4 signs you need a financial adviser in 2023 — and 3 you don’t 

With the new year comes new resolutions, and for many, those happen to be financial. Whether it’s to invest smarter, save more for retirement or simply get better with money, a financial adviser may be the smart choice to help you make those resolutions happen, though they’re not for everyone. (Looking for a new financial adviser? This tool can help match you with an adviser who might meet your needs.)

“I look at the relationship with an adviser like a physical trainer — you tell them what you’re trying to accomplish and they set you on a path to reach your goal looking at many factors … They measure and track progress and if something isn’t working well, they recommend changes,” explains certified financial planner Anthony Ferreira at WorthPointe Wealth Management.

That said, not everyone needs that kind of help. And financial adviser’s services aren’t free and may add up to thousands of dollars a year for some. Here are four signs you may need a financial adviser, and three you don’t. 

You might need a financial adviser if:

• You’ve experienced big life changes.
  You may want to confer with a financial adviser during big life changes such as getting married, having a child, or losing a loved one. “These events can impact your financial life and will require making some adjustments to your long-term financial plan,” says Alana Benson, investing spokesperson at NerdWallet. Other big events to consider getting financial help include disability, retiring, an inheritance or if you get a big salary or pay bump. (Looking for a new financial adviser? This tool can help match you with an adviser who might meet your needs.)

• You’re a retiree or soon-to-be retiree.
  “For retirees with a down market, it may be worth speaking with a financial adviser about how to safeguard a portfolio against large losses and inflation,” says Benson. A financial adviser may also be able to help retirees or soon-to-be retirees with tax planning, estate planning, asset protection, legacy planning and medical expense planning.

• You’re making major purchase decisions.
  Before you plunk down your life savings on something, you may want to consider getting guidance from a pro. “A fiduciary financial planner who offers holistic advice for a flat, fixed-fee can help you with major purchase decisions like a new car, your dream home, that next Caribbean or ski vacation, or maybe that boat or second home you’ve always dreamed of,” says certified financial planner Brent Weiss of Facet Wealth.

• You don’t have the knowhow, temperament or time to address your financial needs.
  “A sign that you need a financial adviser is when you’re struggling with an area of personal finance where you don’t have the knowhow to find a solution yourself … Investment choices in your 401(k) at work, selling a home, converting an IRA to a Roth IRA, investing for children’s college expenses and more are everyday examples,” says certified financial planner Alexis Hongamen at Total Financial Planning. Even if you do have knowledge on the topic, if you don’t have time to deal — or you tend to act rashly or in ways that don’t benefit you financially, an adviser can help there too. “The emotions of being an investor can betray us at the worst times and lead us to take action that is counter to our long-term interests. Creating comprehensive financial plans that address estate, tax, insurance, cash flow and debt are one reason people may benefit from working with a financial adviser,” says certified financial planner J. Derieck Hodges at Anchor Pointe Wealth Management. (Looking for a new financial adviser? This tool can help match you with an adviser who might meet your needs.)

You might not need a financial adviser if:

• You already successfully manage your money. As the saying goes, “if it ain’t broke, don’t fix it.” In other words, if you’re someone who has been dealing with your money well thus far, you may be successful in handling it on your own for years to come. That’s especially true if you’re somone who likes to keep abreast of changes in the financial landscape, which might include everything from 401(k) limits to tax and Social Security changes.

• Money doesn’t stress you out. Those who are constantly stressed about money have the most to gain working with an advisor, R.J. Weiss, founder of the Ways to Wealth personal finance site, tells MarketWatch Picks. But if money doesn’t stress you out, you may not need an adviser to hold your hand through financial decision making — especially considering that they financial help can be costly. (This guide can help you figure out what you might pay for a financial adviser.)

• You stay even keeled. If you see markets go down and then immediately feel the urge to make a drastic change to your finances, you’d probably benefit from having a professional hold your hand through the money management process. “The emotions of being an investor can betray us at the worst times and lead us to take action that is counter to our long-term interests,” says Hodges. But, if you’re able to calmly and comfortably weather the financial storms that will inevitably come your way, you probably don’t need an adviser to make a plan for you.