As an investor advocate and financial educator, I’ve spent years helping people navigate the complex world of financial advisors. One concern I hear frequently is the cost of hiring a fee-only advisor. And this is where I want to be clear: working with a fiduciary advisor is not the same as working with a commission-driven broker who plays “hide-the-fee.” Those sales-driven advisors are compensated for selling products, not advising. And more often than not, you won’t even know the full extent of the fees you’re paying. But I can promise you this: their commissions are almost always far higher than what you’ll pay an advisor from our network. So here’s the irony: within Wealthramp you’ll pay much less and get far more expertise, with 100% transparency about every fee.
I can honestly say that I would never have created Wealthramp if I didn’t know for certain that, while exceptional financial advisors who charge reasonable fees may not be the majority, they absolutely do exist.
Back to fees. I understand advisor fees can feel like a big hurdle, especially if you’re unsure what you’re getting for the fee you’re paying. But here’s the thing: When it’s done right, and you have the right advisor, that advisor can deliver more value than the fee you’re paying. And when advisors can do this consistently, you will understand why they typically have a 98% client retention rate. That’s one way to measure whether they are delivering real value to their clients. It’s also one of my vetting metrics. Just like you– I don’t want advisors in my network who cannot consistently demonstrate they deliver value.
When I talk about the value you’re getting from a financial advisor, I’m referring to three main areas of concern for individuals. Call these the ‘deliverables’ that clients say are game changers and well worth the fee. So, let’s break them down.
1. Personalized Financial Planning
To me, this is the biggest, most tangible benefit of working with a fiduciary financial advisor. It is the thoughtfully crafted, detailed personalized financial plan they create just for you. It is not a cookie-cutter approach; it’s tailored to your goals, your priorities, the planning has to be agile and work for your unique financial situation. Yes, maybe you can do this to some extent by yourself but having fresh eyes on your plan and discussing your vision in detail is smart because you might just be missing something. Whether you’re saving for retirement, planning for your children’s education, managing your portfolio in a choppy market, or investing in real estate for income, the right highly-qualified advisor helps you set clear financial objectives and develops a dynamic financial roadmap that includes your cash flows, taxes, estate planning, and investment strategy.
So what do I mean by dynamic? It’s not just about creating ‘a financial plan’—it’s about making sure the plan keeps working for you. We can’t control interest rates, policy changes, or inflation. We can’t control stock prices, and sometimes we can’t control our personal financial circumstances when sudden, unexpected medical bills happen. Or when our aging parents need to lean on us financially. What we can and should control is how we react– financially. When you’re meeting with your advisor, your time is well-spent to continuously reassess and adjust the plan as your life changes. It’s stress-testing every assumption and projection to ensure that you stay on track and do not run out of money during your retirement.
When it’s done right, the return on this investment in personalized planning far exceeds the cost of hiring an advisor. You’re not just paying for advice; you’re investing in a plan that has guardrails and that keeps you moving forward, no matter what life throws your way.
2. Expert Guidance on Complex Decisions
Life is full of complex financial decisions—things like how to invest in your 401(k), when to sell your restricted stock options, how to minimize your taxes, how to plan for a child or loved one with special needs, what date to actually retire, or when to start claiming Social Security. As we speak, there are lots of federal employees scrambling to analyze a buyout offer. These are huge, consequential decisions that will have a significant impact on your financial future. it’s smart to tap into specific expertise to navigate to the desired outcome.
The advisor who has the right experience and qualifications helps you weigh the pros and cons of every big decision and guides you to make choices that align with what you really want to accomplish. This advisor guidance can save you time, money, and stress. But here’s what I want to emphasize: this kind of advice must come from a fiduciary advisor so you are assured their advice is legally required to be in your best interest.
The value here isn’t only in avoiding expensive mistakes; it’s in optimizing your decisions to grow your wealth and protect your financial security– and help plan your legacy. But it has to start with the right advisor so making better decisions will serve you for years to come.
3. Investing Better—Even If You Think You’re the Next Warren Buffett
We’ve been in a bull market that has lasted approximately 16 years. Now, you might be thinking, "I’m a very savvy investor, I don’t need an advisor for investing advice." I get it—maybe you’re 100% confident in your ability to manage your portfolio just as well when the market’s down. Even Warren had Charlie Munger to lean on all those years. Your advisor doesn’t necessarily have to manage your money. But getting good advice is just… smart. A financial advisor with deep investment expertise can offer insights and strategies that might not be immediately obvious, helping you to invest more wisely, avoid costly tax mistakes, and provide you with better returns. Not to mention audit your entire portfolio to eliminate extra management expenses inside your funds. One of our clients who thought she was invested in low-cost index funds was shocked when Bob Carroll, one of our advisors found more than $17,500 a year of unnecessary fund expenses buried in her $3 million dollar portfolio.
So no, DIY investors don’t have to pay your advisor to manage your portfolio on an ‘assets under management’ fee arrangement. Many of the advisors in our network work on a retainer basis, providing you with expert guidance without actually managing your investments. Many clients start off on either a one-time engagement fee or a retainer-fee arrangement that considers the scope of advice. Then based on that scope of work, the fee will be based on time and complexity. 7 out of 10 of our clients wind up asking their advisor to handle the rebalancing, tax loss harvesting, and other portfolio tasks. The choice is your’s and the point is, sometimes, the right investing advice at the right time can be a game-changer—and that’s exactly what a skilled advisor brings to the table.
Then There’s This: Peace of Mind and Accountability
This is something that’s underappreciated, but I’d argue it's the X-Factor deliverable the advisor can give you: peace of mind. When you know that you have an expert by your side, someone who’s watching out for your financial well-being, it reduces the anxiety and uncertainty that often comes with managing your finances all on your own.
The right advisor also will hold you accountable to your financial aspirations in order to help you stay on track even when life gets busy or distractions arise.
This sense of security and accountability—knowing you’re collaborating with an expert who truly has your best interests at heart—may be worth more than the fee you pay. So, yes, fees matter when choosing a financial advisor. But don’t let the cost get in the way of the value.
If you’re looking for a trusted advisor who puts your needs first, I encourage you to connect with the rigorously vetted, fee-only fiduciary advisors right here in our network who have the expertise to help you succeed. After all, financial advice is about building a better future—and that’s worth every penny.
