Is a Financial Advisor Really Worth It?

Ask ten people whether hiring a financial advisor is “worth it,” and you’ll likely hear ten different answers. Some will point to the cost, others to the potential for better returns—but ultimately, it’s a decision that feels as personal as your money itself.

But here’s the good news: you don’t have to guess. A recent study by SmartAsset put the debate to rest using data and math—not just opinions. The question they aimed to answer was simple: Does working with a financial advisor actually increase your net worth, even after accounting for fees?

Their findings may surprise you.

Quantifying the Value of Advice

SmartAsset created a model that factors in:

• Your investing stage (accumulation vs. retirement)

• Whether you’re working with an advisor

• Lifetime advisory fees

• Estimated net returns
  

Rather than simply compare performance averages, they wanted to know: Can an advisor create net financial gains that clients likely wouldn’t generate on their own?

Their answer? A resounding yes—and they backed it up with projections based on different client scenarios.

The Numbers: With or Without an Advisor?

Here’s what the study found:

Accumulation Phase

• Without an advisor: 4.93% return

• With an advisor: 7.32% return

Retirement Phase

• Without an advisor: ~3.5% return

• With an advisor: ~7.0% return

  
  

Even after deducting advisor fees, the lifetime net worth was significantly higher for those who worked with a planner.

Real-Life Scenarios: The Difference Is Measurable

Let’s break this down with a few example profiles from the study:

• Age 35 | $125K income | $250K net worth

  • Without an advisor: $991,000 lifetime net worth

  • With an advisor: $2.2 million

  • → 125% increase
    

• Age 45 | $175K income | $750K net worth

  • Without: $1.5 million

  • With: $3 million

  • → 2x net worth
    

• Age 55 | $220K income | $1.5 million net worth

  • Advisor adds nearly $1.3 million to their lifetime wealth
    

• Age 65 | $80K income | $2 million net worth

  • Advisor adds $633,000 during retirement
    

Time Matters: The Sooner, The Better

The study also highlighted how time in the client-advisor relationship increases impact.

For example:

• Age 25 | $150K income | $500K net worth

  • Working with an advisor increases projected lifetime net worth by 212%

• Age 70

  • Still nets nearly 20% more with an advisor—even at retirement age

    
    

The takeaway? The earlier you begin working with a professional, the more value they can deliver—but it’s never too late to benefit.

Higher Net Worth, Higher Impact

In a separate analysis, scenarios were run for a 45-year-old starting with different levels of net worth. The result? The more you have, the more an advisor helps you grow. In fact, a 45-year-old with $10 million could be leaving more than $30 million on the table by not working with an advisor.

More Than Just Numbers: Behavioral & Technical Value

While the math is compelling, there’s a human side too. Financial advisors bring two types of intelligence to the table:

• Technical: tax law, market analysis, risk strategies, investment tools

• Behavioral: helping clients avoid emotional decisions that sabotage wealth

  
  

Whether it's holding onto underperforming stock out of sentiment, or avoiding necessary market exposure due to past trauma, an advisor acts as a guardrail—helping clients act in their own best interest even when emotions flare.

So… Are Advisors Worth It?

According to this study—Yes.

Whether you’re in your 30s with $300K or in your 60s with $5M, the right financial advisor can deliver value that goes far beyond what most individuals can achieve on their own—and not just in returns, but in reassurance and long-term clarity

LPL Tracking Number: #744242

Disclosure: This is a hypothetical situation based on real life examples. Names and circumstances have been changed. The opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments or strategies may be appropriate for you, consult your financial advisor prior to investing. All investing includes risks, including fluctuating prices and loss of principal.