How to Get the Most Value From Your Financial Advisor in 2027

December 26, 2026 - If you're paying a financial advisor 1% a year, do you know what you're getting for it? A lot of people don't. Stay with me, because not everyone needs an advisor, and all roads don't lead to us. But if you have one, or you're thinking about it, here's what a good advisor should actually be doing for you, and how to make sure you're getting more value than you pay.

Two families can have similar investment portfolios and very different needs for a financial advisor. One family may do perfectly well managing things independently. The other may be overlooking opportunities involving taxes, retirement, investments or estate planning that could have a substantial impact on their family's wealth.   

When You May Not Need an Advisor

If your finances are relatively straightforward, and you have the time, interest, and knowledge to manage them yourself, you may be better off on your own.  Much of this decision comes down to how interested and comfortable the person who handles the family's finances is.

A properly diversified portfolio of low-cost investments can be an excellent investment strategy and you can consult your CPA or estate attorney when a particular tax or estate question comes up. For families with relatively modest assets or uncomplicated finances, the value of ongoing financial advice may simply not be worth the fee.

When Professional Advice Becomes Valuable

Even experienced do-it-yourself investors, however, can develop blind spots as their wealth grows. Opportunities often emerge in tax planning that aren't apparent from looking at investment statements. An occasional second opinion may uncover something worthwhile without requiring an ongoing advisory relationship.

As life becomes more complex, financial decisions often become interconnected. Retirement, inheritance, the sale of a business, divorce, or the death of a spouse can put investments, income taxes, estate planning, insurance, and asset protection in motion at once. A decision that looks sensible on its own can create problems elsewhere.

You may understand investments but feel less confident about tax planning.  Or perhaps one spouse has always handled the finances, leaving the surviving spouse uncomfortable with the responsibility.

A good advisor helps bring these decisions together into one plan the family understands and keeps that plan current as circumstances change.

What Should You Be Getting for Your Fee?

Some people believe financial advisors primarily select investments and try to outperform the market. Decades of academic research suggest that consistently beating the market by picking individual investments is extremely difficult, particularly after fees.

Comprehensive financial planning involves considerably more. If you're paying for ongoing financial advice, here are eight things you should be getting:

1. Tax planning. Has your advisor reviewed your tax returns and developed a multiyear strategy for managing income taxes, capital gains, Roth conversions, and eventually taxes paid by your heirs?

2. Retirement planning. Are they helping you determine when work becomes optional, when to claim Social Security, and how to coordinate retirement withdrawals, Medicare, and other benefits?

3. Investment management. Is there a written investment strategy with a disciplined process for rebalancing, controlling risk, minimizing taxes, and keeping investment expenses low?

4. Estate planning. Has your advisor reviewed your wills, trusts, and beneficiary designations to ensure your assets will pass to your heirs as intended, with consideration for taxes and asset protection?

5. Insurance and asset protection. Have they reviewed your liability exposure, insurance coverage, and long-term care risks, including which risks you can reasonably afford to self-insure?

6. Charitable and legacy planning. If giving is important to you, are they exploring ways to make gifts more tax-efficient, including appreciated investments, donor-advised funds, or qualified charitable distributions (giving directly from your IRA after age 70½, which can lower your taxes)?

7. Coordination and follow-through. Does your advisor work directly with your CPA and attorney, help implement recommendations, and revisit your plan as tax laws and family circumstances change?

8. Business ownership and succession. If you own a business, is your advisor helping you prepare for a sale or other liquidity event, diversify wealth concentrated in the business, minimize taxes, and develop a succession or legacy plan that protects your family and preserves what you've built?

Not every family needs all of these services. But if your advisor has never covered these topics, you may be paying only for investment picks and market predictions.

The real value of an advisor usually comes from these things working together, not from any one of them alone.

How Do You Choose the Right Advisor?

The financial services industry uses titles such as financial advisor, wealth manager, and financial planner rather loosely. There's also a long list of professional designations, some requiring substantial education and experience, and others considerably less.

First, look for a CERTIFIED FINANCIAL PLANNER® professional (CFP®) then ask two questions:

Are you a fiduciary? Look for an unequivocal yes, with a commitment to act in your best interests throughout the advisory relationship.

How do you get paid? Does anyone pay you other than your clients? Understand whether the advisor receives commissions, referral fees, or compensation from financial product providers. Fee-only compensation removes important sources of potential conflicts.  Your advisor will be loyal to the source of compensation.   

We suggest asking a prospective advisor to agree in writing to the NAPFA Fiduciary Oath, which includes commitments to act in the client's best interests, disclose conflicts, and avoid compensation tied to selling financial products or referrals.

Three organizations offer useful directories of financial planners who meet these standards:

• National Association of Personal Financial Advisors (NAPFA) — Fee-only financial planners committed to fiduciary standards. Timberchase Financial is a member.

• Garrett Planning Network — Fee-only planners, many offering hourly or project-based advice without an ongoing commitment.

• XY Planning Network (XYPN) — Fee-only CFP® professionals, including many who serve younger families and offer virtual planning.

Disclosure:  We are members of NAPFA, but not Garrett Planning Network or XYPN.

So, Is It Worth It for You to Have a Financial Advisor in 2027?

If you're comfortable managing your finances, your situation is relatively straightforward, and professional advice would add little value, you may not need one.

As your wealth grows and your financial decisions become more interconnected, a second opinion may be worthwhile, even if you intend to continue managing everything yourself.

Sometimes a review uncovers opportunities you've overlooked. Sometimes it confirms that what you're already doing is entirely appropriate.

Either is a good outcome.

If you'd like an independent perspective, contact Timberchase Financial to start a conversation, or email me at bryan@timberchase.net.