Managing your finances might feel straightforward—until one day it doesn’t.
For many professionals, financial planning begins simply enough: contributing to a 401(k), building some savings, and possibly automating a few investments. But as your career progresses and your compensation becomes more complex, so do the decisions tied to it. Suddenly, the stakes are higher. Mistakes become more expensive. And the margin for error shrinks.
That’s when the question tends to surface: Should I hire a financial advisor?
But in reality, that’s not the most important question. The better question is not if, but when: When should you hire one?
Whether you're years from retirement or nearing a major career milestone, this guide will help you understand the right time to bring in a professional. We'll also explore what a financial advisor actually does, how much it costs to work with one, and—perhaps most importantly—whether it's worth the investment.
What Does a Financial Advisor Do?
It’s easy to assume that financial advisors are primarily focused on managing investments. And while investment strategy is certainly part of the equation, it’s just one piece of a much broader service offering—especially when you’re working with a fiduciary advisor who takes a comprehensive view of your financial life.
At Willis Johnson & Associates, we often describe financial planning as the process of bringing everything together—taxes, investments, employer benefits, cash flow, retirement projections, and legacy goals—into a single, integrated strategy.
Consider an energy professional who’s navigating multiple layers of compensation: base salary, a sizable annual bonus, RSUs vesting each quarter, and a growing non-qualified pension balance. Add to that a deferred compensation plan, a traditional pension to evaluate, and a target retirement date in the next five years. What might seem like a collection of financial accounts is, in fact, a complex ecosystem. Each decision—how to allocate savings, when to convert to Roth, how to handle NUA or IRA rollovers—affects the others.
That’s where a good financial advisor steps in: to help clients see the full picture and make decisions with context.
This is especially true when taxes are involved. Most advisory firms stop short at “tax-aware investing.” But at WJA, we go further by offering in-house tax preparation alongside the in-depth planning, something only 30% of RIAs provide as of 2024, according to Fidelity’s benchmarking data.
When your financial strategy and tax strategy are developed under one roof, the result is tighter coordination and fewer costly surprises in April.
Beyond technical knowledge, a financial advisor also acts as a guide. We help clients clarify goals, stress-test timelines, and adapt their strategy as life changes. Whether you’re exploring early retirement, planning charitable giving, or simply deciding when to exercise stock options, you’re not left guessing.
In short, a good advisor doesn’t just tell you what to do with your money—they help you understand how every decision fits into your long-term vision, so you can move forward with clarity and confidence.
How Much Does a Financial Advisor Cost?
One of the most common questions we hear is: How much does it cost to work with a financial advisor? And it’s a fair one, especially when the financial industry hasn’t always been clear about how advisors get paid or what clients are actually paying for.
Financial Advisor Pricing Models
In general, there are a few common pricing models. The most widely used is a percentage of assets under management (AUM) — where the advisor charges an annual fee based on the size of your portfolio. This typically ranges from around 0.75% to 1.25%, depending on the firm, the complexity of your situation, and the services provided. Other models include flat annual fees or hourly planning rates, which are sometimes used for one-time advice or standalone financial plans.
At Willis Johnson & Associates, we operate as a fee-only fiduciary firm. That means we don’t receive commissions for recommending products or executing trades. Instead, we’re compensated solely for the advice we provide as a percentage of the assets we manage on your behalf. It’s a structure that aligns our incentives with yours—and keeps our focus where it belongs: on your goals.
Still, it’s important to look beyond the fee itself. The more important question isn’t just what does it cost, but what do I get in return? Because financial advice done well doesn’t just manage your money—it helps you make better decisions that may increase your net worth, reduce your tax bill, and protect what you’ve worked hard to build.
Is a Financial Advisor Worth the Cost?
If you’ve ever wondered whether working with a financial advisor is “worth it,” you’re not alone. It’s a reasonable question, especially for those who’ve done a good job managing their finances independently.
What Does a Financial Advisor Do?
Here's the reality: the value of advice isn’t just in what an advisor does. The value lies in what those decisions can help make possible.
Two independent research reports help illustrate this. According to Vanguard’s Advisor Alpha study, working with an advisor can add up to about 3% in potential annual value through things like portfolio rebalancing, behavioral coaching, and withdrawal strategy. Similarly, Morningstar’s Gamma research shows that making more informed financial planning decisions can boost retirement income by as much as 29%, which translates to the equivalent of an extra 1.82% in annual return.
These aren’t promises—they’re averages based on large data sets. Like any approximation, the actual amount of value added may vary significantly, depending on clients’ circumstances. But they do show that the value of advice adds up. And in our experience, that’s especially true when tax decisions are layered into the equation.
We’ve seen clients miss opportunities simply because they didn’t realize what was at stake: forgetting to file a Form 8606 and paying taxes twice on what should've been tax-free Roth conversions; triggering higher Medicare premiums because of poorly timed withdrawals; or over-concentrating in company stock without a plan for risk reduction.
A well-timed conversation with a fiduciary advisor could help prevent all of those issues.
And value goes beyond numbers. Working with an advisor can also help reduce stress, eliminate second-guessing, and free up time to focus on what matters most. The financial decisions don’t go away, but they can become easier and far less lonely.
So, is a financial advisor worth the cost? If you’re navigating complexity, the better question might be: What’s the cost of going it alone?
Launch the Next Stage of Your Financial Journey
At Willis Johnson & Associates, we believe that the decision of whether to hire a financial advisor is a personal choice that takes your long-term goals, financial acumen, time allowance, and investment philosophy into consideration. We highlighted a few of the major factors to consider before deciding on an approach that works best for your family, but there are plenty of others to consider as well.
As a fiduciary, fee-only firm, you can trust that we're always working in your best interest instead of for commissions or product sales. Our commitment is to helping your family make the most of your resources at every stage of life.
You can learn more about the services we offer here or contact our team for a complimentary first meeting to learn more about how we can help you achieve your financial goals.
