Quick summary
This checklist helps DIY investors and savers decide when to bring a financial planner onto the team. It focuses on triggers (life events, complexity), practical thresholds, interview questions, fee expectations, and immediate next steps you can take before — and after — hiring a planner.
Why this matters
Financial planning is not just investing. It ties taxes, insurance, cash flow, retirement withdrawals, estate decisions, and behavioral coaching into one coordinated plan. In my 15+ years advising people, the biggest mistakes I see from DIYers are: not planning for taxes and sequence-of-returns risk in retirement, underinsuring major risks, and letting emotional decisions derail long-term plans. A planner helps reduce those risks and gives you a clear implementation path.
Authoritative resources to consult while you decide: IRS guidance on retirement accounts and distributions (irs.gov/retirement-plans) and the Consumer Financial Protection Bureau’s overview of advisor types and what to ask (consumerfinance.gov/consumer-tools/financial-advisors/).
Decision checklist: clear triggers that usually justify hiring a planner
Use this checklist as a scoring guide. If two or more items apply to you, a planner will probably add value.
- Major life events or transitions
- You’re getting married, divorced, widowed, or cohabiting with shared finances.
- You’re approaching retirement or planning to change careers early or late in life.
- You inherit a significant amount, start or exit a business, or receive a concentrated stock position.
- Complex income or asset situations
- Multiple income streams (self-employment, rental real estate, business equity).
- Significant taxable events or complicated tax filings (stock sales, foreign accounts).
- Real estate, trusts, or multiple investment accounts across custodians.
- Tax, estate, or benefits complexity
- You need a tax-aware investment or withdrawal plan.
- You need to coordinate employee benefits (401(k) rollovers, pensions, stock options).
- You have estate planning needs (trust funding, beneficiary coordination, special-needs planning).
- Time, knowledge, or behavioral limits
- You don’t have time, interest, or confidence to manage investments and maintain a plan.
- You recognize emotional decisions (panic selling, chasing returns) hurt your results.
- You want accountability — regular reviews, rebalancing, and coaching.
- Specific financial goals with measurable timelines
- Near-term retirement within 5–10 years and questions about withdrawal rates.
- Financing college, buying/selling homes with tax implications, or funding a caregiving expense.
- You’re making a high-cost decision
- Selling a business, taking early Social Security, or relocating internationally — decisions where small mistakes can cost tens of thousands.
Practical thresholds and cost/benefit considerations
No single asset threshold forces you to hire an advisor, but practical signals include:
- Investable assets of $100,000–$250,000: many people start to benefit from professional portfolio management and tax-aware advice at this level.
- Net worth or income that requires tax planning or asset protection beyond basic withholding.
- Upcoming decisions where an advisor’s guidance could prevent a one-time large financial loss (e.g., $50k+).
Typical fee structures (2025 industry norms):
- Fee-only AUM (assets under management): commonly 0.5%–1.0% annually; often sliding scale.
- Flat fee for a comprehensive financial plan: $1,000–$5,000 (depends on complexity).
- Hourly planning or consulting: $150–$400 per hour.
- Commission-based or product-sold models: fees vary; confirm conflicts of interest.
Price vs. value: ask whether the planner’s advice will likely save, make, or preserve more money than their fees. For example, better tax-aware withdrawal sequencing in retirement can reduce lifetime taxes by an amount that exceeds a year or two of advisor fees.
What you can do as a DIYer before hiring a planner
Prepare these documents and questions — it saves money on discovery time and improves the quality of advice:
- A one-page snapshot: monthly cash flow, emergency fund balance, investable assets, debts, and key employer benefits.
- Recent tax return (last 2 years), 401(k)/IRA statements, mortgage and debt statements, and insurance policies.
- A prioritized list of goals with timelines (buy a home in 2 years; retire at 65; fund three years of college).
If you want to keep some work DIY, retain a planner for a focused project (tax-aware retirement withdrawal plan; estate beneficiary cleanup) rather than ongoing AUM.
How to evaluate and choose a planner
Start by screening credentials and fiduciary status:
- Prefer CFP® professionals for comprehensive planning. CFP Board standards include education, exams, and ethics (cfp.net). Many CFP® certificants are required to act as fiduciaries when giving planning advice.
- Look for fee-only planners if you want to minimize conflicts of interest. The CFP Board, National Association of Personal Financial Advisors (NAPFA), and the XY Planning Network are useful directories.
Use the interview to assess fit — both technical and behavioral. Sample questions I use in practice:
- What are your credentials and do you act as a fiduciary in writing?
- How are you paid? (AUM, flat fee, hourly, commissions)
- Describe a client situation similar to mine and what you recommended.
- How often will we meet and what does ongoing service include?
- Can you provide references and a sample financial plan report?
For more structured interview questions, see our guide: Evaluating Financial Advisors: Questions to Ask Before You Hire One.
Also review specialty pages if your needs are focused: Certified Financial Planner (CFP) and our general Financial Planner overview.
Red flags to avoid
- Lack of transparency about fees or services.
- Promises of guaranteed returns or pressure to buy proprietary products.
- No written fiduciary commitment or no sample plan to review.
- No clear communication process or unclear change-of-scope terms.
Real-world examples
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Case: Retirement withdrawal sequencing. A couple with $1M in retirement accounts planned to retire at 67. We modeled Social Security timing and Roth conversions. The plan reduced expected lifetime taxes by an estimated $120,000 vs. a blunt withdrawal strategy — a concrete example of where planning paid for itself.
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Case: Concentrated stock position. A founder holding a private-company stake faced major tax and diversification risk. We blended option-based hedging, staged sales, and tax-loss harvesting to lower risk before a liquidity event.
These examples show that planning’s value is often in tax strategy, sequencing, and removing behavioral risk.
How to work with a planner once you hire one
- Define scope and deliverables in writing (what’s included, frequency of reviews, expected milestones).
- Get a single-page plan summary you can act on in the next 90 days.
- Schedule annual check-ins and update the plan after major life changes.
Remote work is normal: many planners operate virtually, which widens your options and keeps costs competitive.
Final checklist: should you hire now?
Hire a planner if:
- Two or more checklist triggers (life events, complexity, tax or estate needs) apply.
- You lack time or confidence to implement a plan that materially affects your goals.
- A one-time planner engagement could prevent a large loss or tax bill.
Keep DIYing if:
- Your finances are simple, you enjoy managing them, and you’re hitting milestones without stress.
- You use low-cost, tax-efficient investments and rebalance regularly.
Professional disclaimer
This article is educational and not personalized financial advice. Your situation is unique. Consult a qualified financial planner or tax professional before making major decisions. For credential details see CFP Board (cfp.net); for consumer tips on advisors see the Consumer Financial Protection Bureau (consumerfinance.gov/consumer-tools/financial-advisors/); for tax rules see the IRS (irs.gov).
If you want, I can turn this checklist into a printable worksheet or a short interview script to use when you call prospective planners.
