Are Financial Advisors Worth It? Finding the Best Small Business Financial Advisor For You


Your business is successful, and you want to make sure your money is working hard for you. You want to make smart financial decisions that help you build wealth, create the life and business you want, and help you reach work optional. 

If that sounds like you, then you are right at the point where it makes sense to engage with a financial planner. 

| Learn more: How to Find a Great Financial Planner

Like any other business partnership, working with a financial planner is an investment in your business and in your financial success. Over time, your partnership with your financial planner can pay dividends as you work towards your financial and investment goals. 

I always ask my new clients “What do you consider to be a success in our time working together?” Ultimately, I define success on an individual level because no two financial plans have the same goals. Success is creating the business and life you dream of.

Financial Planners Bring Value Throughout The Life of the Business 

For newer business owners, that might mean figuring out income goals, understanding cash flow, and crafting business strategies around achieving those goals. 

For established business owners, this might mean both calculating what income amount is enough and translating that into a target for financial independence. Or maybe you also want to relax a little and spend more time with your family. Depending on your personal goals, we’ll have different financial strategies along the way. 

If you are a business owner nearing retirement, then a financial planner can help you understand what you need to get from the business in order to make your exit and truly be done. It’s also important for retiring business owners to have clarity on their income strategy once they are no longer bringing in an active income. 

In addition to creating a financial plan to meet your personal goals, all clients also get ongoing investment and tax optimization along the way. These services are a vital part of a healthy financial plan, and let you rest easy knowing that your money is taken care of. 

Financial Planners Can Provide Clarity During Points of Transition 

Most people choose to hire a financial planner when they are at a transition point that they don’t know how to navigate on their own. 

This might be when you are making good money in the business, and you don’t know what to do with it. Or it could be when you are faced with college costs and you aren’t sure how to make it all happen. Or it might be as you begin to think about stepping away from the business and what to do next. 

Creating Your Holistic Financial Plan

Much of the value in hiring a financial planner is created by having a financial professional whose job it is to focus on you. I work with my clients to understand what they want out of life, and that means I use a custom process designed to help clients clarify priorities and bring the version of the life they hope for into clear focus. 

This means that when we start working together, I take a holistic look at all areas of clients’ financial life. We typically review: 

Current Cash Flow 
Planning for Financial Independence
Estate Planning 
College Planning 

My focus is on business owners, so we also typically review: 

Business Profitability 
Potential Business Exit Planning 
Creating a Retirement Plan 

How Do You Know What Financial Planning Services You Need?

When you are determining what financial planning services to look for, think about what level of service you’d like.

  • Do you want a thinking partner that can help you make decisions long term?
  • Would you like for someone to manage your investments for you so you can save yourself time and concentrate on other things? 
  • Do you want someone to give you a strategy, and then you take the rest from there? 

Knowing this will help you decide if you want to do a one time engagement or an ongoing financial planner relationship. 

| Learn More: What Do Financial Planners Do?

In terms of how comprehensive of a service you need, remember that money is intertwined in almost all aspects of business, and one area can impact the other. For that reason, if you are contemplating a big decision, I think it makes sense to focus on a comprehensive approach. This will help you prioritize what is most important to you, and help make sure you don’t have a weak spot in your financial plan that can keep you from your goals. 

How Much Do Financial Planning Services Cost?

Investment advisors can be paid in a myriad of ways. 

Some advisors are paid directly by the company that hires them to sell products. This includes investment products like stocks and bonds, and insurance products like life insurance or annuities. These advisors get paid a commission by the company depending on what they sell. 

Some advisors are fee-only, meaning they are paid only by their clients. Some advisors will charge a one time fee. Some charge ongoing fees, whether monthly, quarterly, or yearly. Some charge a percentage of the assets they manage. 

Some advisors are fee-based. This person does both of the above. They charge ongoing fees and get commissions from products. 

I am a fee-only advisor, meaning I am paid only by my clients, and I do not work on commission from any companies. 

I charge a monthly fee for financial planning. This fee starts at $4,500 for the first year, with $900 upfront and $300 a month ongoing. The fee could be higher based on the complexity of someone’s situation. This fee structure means you get high quality advice regardless of how much you have in liquid assets. 

If someone chooses to invest with me, they pay for investment management separately with an assets under management fee. I like this because it allows for clients to manage their own investments if they would prefer to do so. This starts at 0.8% and goes down from there. 

Are Financial Advisors Worth It? 

On the most basic level, a financial planner is worth it when you are ready to invest in a partner that will help you create a clear financial picture, work together on strategy to make that picture a reality, and help you manage your investments, tax plan, and overall financial health. 

If you’re ready to work together, or if you want to learn more about working with me, the first step is to book a complimentary 1:1 call so we can see if we are a good fit to work together! 

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