If you’re a single salary earner, no kid, have a mortgage, want to invest into index funds, no plan to have kids, already have a personal budget, would a financial advisor add any value?

Some people turn to financial advisors when they need help with reaching their long-term financial goals. While there is a benefit to speaking with a fiduciary who is required to serve in your best interests, some people think they can wing it.

That mentality came up in a recent AusFinance Reddit post. The original poster is single without a kid, earns a salary, has a mortgage, wants to invest passively into index funds, and already has a personal budget. The individual also has no plan of having kids.

With this context in mind, the Redditor asked if it even makes sense to consider getting a financial advisor. Commenters shared their thoughts.

His Finances Don’t Seem That Complicated

Financial advisors have their place, and you’ll typically benefit from having one as your finances get more complicated. They can help you navigate various market cycles and act as a mentor along the journey.

However, the simpler your finances are, the less sense it makes to work with a financial advisor. For instance, a financial advisor can guide you during market downturns and remind you to keep a long-term perspective. However, if you are committed to investing each month into a passive index fund and are comfortably keeping up with your budget, then it’s not as necessary to work with a professional.

One of the top comments came from a Redditor who said they could save the original poster $5,000 in financial advisor fees with a quick list of items to do. The list included checking your insurance, maximizing portfolio contributions, and investing in indices. Succession planning was an optional item on the list since the Redditor doesn’t have any kids.

You Can Learn the Fundamentals on Your Own

It doesn’t take a lot of effort to learn the basics of investing and money management. You can find good ETFs within minutes. If you aren’t sure where to start, you can look for ETFs that mirror the performance of the S&P 500 or Nasdaq Composite.

Then, you can read a bunch of articles that offer budgeting tips, retirement advice, a list of the top high-yield savings accounts, and other insights. The internet has made it easier for people to build up their knowledge in a short amount of time.

When your finances are as simple as the original poster’s finances, it’s easier to settle with the fundamentals. You don’t have to focus on advanced money management strategies if you want to stick with the basics. 

The Coaching Element Is Valuable

The greatest strength of financial advisors is their ability to coach clients. They can provide valuable insights that you don’t know, and some of those insights can translate into higher returns and lower taxes. 

It’s similar to learning about a sport online versus hiring a coach to guide you through it. You can learn things online and build your general knowledge. However, a financial advisor can provide personalized feedback and suggestions.

Financial advisors can also get better over time. As they work with you more, they will get to know you. They will understand your strengths and weaknesses, and they will get better at knowing what to say and how to approach each conversation.

Money management isn’t easy. Some people are comfortable with doing it alone. However, you can get better results and feel more at ease if you work with a financial advisor. Just make sure you work with a fiduciary.

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