Should I get a financial adviser?

Investing a significant amount of money, like your initial $100K along with an additional $20-30K annually, is a substantial financial decision. It’s understandable why you might consider seeking professional advice. Here are some factors to consider when deciding whether to hire a financial adviser or to handle investments yourself:

1. Complexity of Your Financial Situation: If your financial situation involves multiple income streams, complex tax considerations, estate planning needs, or other intricate details, a financial adviser might provide valuable guidance.

2. Your Investment Knowledge and Confidence: If you’re relatively new to investing or not very confident in your ability to manage a large portfolio, the expertise of a financial adviser can be beneficial. They can help you understand various investment vehicles, assess risk tolerance, and build a diversified portfolio.

3. Cost vs. Benefit: As you noted, financial advisers can be expensive. It’s important to weigh the potential cost against the benefits you might gain. For straightforward investment scenarios, such as investing in low-fee index ETFs, managing your investments yourself can be a more cost-effective option. However, even a one-time consultation with a financial adviser might be worthwhile to set up a solid investment strategy initially.

4. Time and Interest: Managing your own investments requires time and a genuine interest in financial markets and ongoing portfolio management. If you prefer to be hands-off or don’t have the time to dedicate to managing your investments, an adviser might be worth the cost.

5. Access to Information and Tools: Today, there are numerous resources and tools available to individual investors. Platforms like Pearler offer educational content and investment tools that can help you make informed decisions and manage your portfolio effectively.

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Hi Lucas,

The articles say that mostly just as a disclaimer since there are a lot of legalities around financial content + what might constitute as advice on the internet.

It sounds like you’re very much on the right track to get started if you’re being this thoughtful about it, and like you say it’s definitely not cheap to see an advisor.

If you feel confident in your plan so far, then I’d say there’s no need to begin investing. But if you would feel a lot more comfortable getting a second opinion before going ahead then of course an advisor could help with that. Tricky part is many of them will want an ongoing relationship with you since it’s best for them, so there is a conflict of interest there.

I’d say get started first if you can, and as the numbers get bigger or you start feeling a bit anxious about what you’re doing, then start seeking out an advisor to help. Just my 2 cents.