I’d really like to have someone advising me and managing my money, but I’m curious if others in this general income bracket use financial advisors

The more elevated your net worth and the higher you climb up the income ladder, the more valuable the services of a financial advisor stand to be. Indeed, the stakes are higher when your income and net worth are higher. Also, the cost of an advisor also stands to comprise a smaller chunk of your invested assets if you’re paying a flat fee rather than a percentage of invested assets.

Around 27% of Americans use the services of a financial advisor, but as you go up the income ladder, that percentage is likelier to be higher. Indeed, it should be no mystery as to why some of the more affluent American households (those with around half a million in liquid — think investable — assets) could be a key source of demand for such services. After all, delegating tasks to a seasoned professional can make sense for professionals who don’t have the time in their day to look for stocks or ETFs to buy amid the market wreckage.

Ultimately, it’s not how high your income is that should determine whether or not you look to obtain the services of a financial planning pro. Rather, it’s how much financial savvy and confidence you have to be the captain of your own ship.

If a 10% correction has you reconsidering your risk tolerance and asset allocation, a chat with an advisor could help.

Of late, with the stock market fresh off a 10% correction, the waters have become somewhat tougher to steer through. And if you no longer feel you can steer your portfolio down the right path in the face of increasingly choppy waters, there’s no shame in hiring a seasoned captain to take the wheel so that you can concentrate your efforts on other things.

Indeed, a 10% wipeout in your portfolio value is painful. But if you’re feeling increasingly concerned and don’t know if you should be buying, selling, or sitting on your hands, a financial advisor can help point you in the right direction.

Arguably, an advisor is also good for those who are experienced in navigating markets but have gotten more seasick from the latest Trump tariff tumble in the stocks. Getting a more nuanced perspective can never hurt. That said, if you find an advisor that offers very limited value, you don’t need to stick with them for the long haul. At the end of the day, it’s more about comfort levels in navigating a windy market ride that may not get smoother as we move into the year.

Though index funds and ETFs would offer a hands-off approach for such folks, many of those who lack the temperament amid market sell-offs may be better served with a fiduciary in their corner. If an advisor can calm through a tariff uncertainty-fuelled climate like this one with having to make drastic moves, that’s money well spent, in my view.

At the end of the day, not everyone knows how to react when uncertainty is in the driver’s seat and the bull market comes to an abrupt end.

The bottom line

If you know what you’re doing and you don’t consider yourself a reactionary investor who’s inclined to sell in panics and buy in moments of market euphoria, the DIY journey may still be worth taking. However, if you don’t have a game plan for when the market finally sinks, and you’re catastrophizing over a potential wipeout of your retirement nest egg, it’s a good idea to reach out to a fiduciary, at least in my humble opinion.

The missed gains from fear-based selling out of stocks after a devastating plunge could vastly exceed that of an advisor’s fees. So, in short, it’s more a matter of one’s personal situation rather than how much one has saved up. However, a fatter nest egg could make the services of a pro that much more attainable.

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