Is Now the Time to Work With a Financial Planner?
If you’ve been asking yourself whether to hire a financial planner, the short answer is: probably. The long answer is worth a few minutes of reading, because research shows professional advice delivers measurable benefits beyond picking funds.
What Advisors Actually Add
Vanguard’s research into “Advisor’s Alpha” — a framework that breaks down how advisors create value — estimates that good advice can add roughly 3 percentage points of net return over time for many clients. Much of that value doesn’t come from choosing the hottest stock; it comes from portfolio construction, tax-aware moves, rebalancing, fee management, and, critically, behavioral coaching (Vanguard attributes over 200 basis points of the value to helping clients avoid costly emotional mistakes).
Behavioral Coaching: The Silent Performance Booster
Multiple long-running industry studies show that investors often harm their own returns through timing mistakes, panic selling, and performance-chasing. DALBAR’s Quantitative Analysis of Investor Behavior (QAIB) consistently finds that the average investor’s realized returns lag the returns of the underlying funds they own — in other words, people’s decisions often reduce their own investment performance. Financial planners provide ongoing guidance that helps clients stick to a plan during market swings, which research shows is one of the biggest drivers of improved outcomes.
Concrete Improvements in Financial Preparedness
Advice also shows up in real-life financial readiness, not just portfolio performance. The CFP Board’s 2025 Financial Planning Longitudinal Study found that Americans working with CFP® professionals are more likely to have emergency savings, a detailed retirement plan, and an investment strategy reviewed regularly. For example, roughly four in five people who work with a CFP® professional report having three months of income saved in an emergency fund — significantly higher than people who don’t work with such planners. Those practical preparedness metrics translate directly into reduced stress and better ability to handle life shocks.
Other Channels of Value: Taxes, Fees, and Coordination
Advisors also create value by reducing fees (moving clients into more cost-effective solutions), optimizing tax outcomes (tax-loss harvesting, strategic withdrawals in retirement), and coordinating complex decisions across retirement accounts, Social Security claiming strategies, estate concerns, insurance, and more. Studies from industry firms (Russell, Vanguard, and others) highlight that the cumulative effect of small, coordinated improvements across these areas can be meaningful, especially for people nearing retirement or facing life transitions.
Who Benefits Most — And When to Act
A planner is especially valuable if any of the following apply:
You’re approaching or in retirement and need withdrawal, tax, and longevity planning.
You’re experiencing a major life event (inheritance, divorce, career change, sale of a business).
You feel tempted to time markets, or you’ve struggled to save consistently.
You have multiple accounts (401(k), IRA, taxable accounts, pensions) that need coordination.
That said, advice isn’t one-size-fits-all. If your financial situation is simple, low-cost automated options may be enough while you learn basic investing discipline. But even simple situations can benefit from a one-time plan or a second opinion. The research suggests the value of advice increases with complexity, wealth at risk, and the potential emotional cost of making a costly mistake.
Practical Next Steps
If you decide now is the time:
Define your goal for an advisor (retirement plan, tax strategy, behavioral coaching).
Ask for measurable examples of how they’ve helped clients (not just portfolio returns).
Check credentials (CFP® for comprehensive planning is a strong signal) and how they’re paid (fee-only vs. commission).
Start with a discovery meeting — many planners offer a brief consult to see fit.
Bottom Line
Research from Vanguard, DALBAR, the CFP Board, and firms such as Russell make a clear point: professional financial advice can add measurable value — through improved returns driven largely by behavioral coaching, better preparedness, and smarter coordination of taxes and fees. If your finances are more than “set it and forget it,” now is a sensible time to talk with a planner and convert uncertainty into a concrete plan.
