What Do Financial Advisors Do, and Do You Need One?

What do financial advisors actually do? It’s a fair question—and one that doesn’t always have a clear answer at first glance.

You’ll find a wide range of certifications, job titles, and specialties out there, from investment managers to retirement planners to full-service financial coaches. Depending on who you ask, a financial advisor might help you invest smarter, plan for retirement, reduce taxes, or just feel more confident about your next big move.

Here’s what financial advisors really do and how to tell whether working with one makes sense for you.

Table of Contents

1. What does a financial advisor do?
2. Types of financial advisors
3. What a financial advisor doesn’t do
4. How financial advisors help in real life
5. How to know if you need a financial advisor
6. What to expect when working with a financial advisor
7. How to find the right advisor for you
8. FAQ

What does a financial advisor do?

At its core, a financial advisor helps you make smarter decisions with your money—whether that means investing, saving, budgeting, or planning for big milestones like retirement.

The term “financial advisor” is broad. It can include Certified Financial Planners (CFP®), investment managers, retirement specialists, and even financial coaches. Some focus mostly on investing, while others take a full-picture approach to your finances.

Here’s a snapshot of what financial advisors typically help with:

• Retirement planning. Helping you figure out how much you need to retire and how to get there.
• Investment advice. Building an investment strategy based on your goals, timeline, and risk tolerance.
• Budgeting and cash flow management. Creating a plan for spending, saving, and investing that supports your bigger goals.
• Tax efficiency strategies. Finding ways to lower your tax bill through smart investment, retirement, or estate planning moves.
• Debt payoff strategies. Helping you prioritize and pay down high-interest debt faster.
• Estate and insurance planning. Making sure your assets are protected and your wishes are carried out.

Some advisors specialize in one or two areas, while others offer comprehensive financial planning that touches every part of your financial life.

We help by educating our clients so they understand why we are making the recommendations we are making. When you educate clients, it makes them feel empowered in their decision-making. We also help clients understand how the various pieces work together. Our firm emphasizes tax planning, too.

What types of financial advisors are there?

Not all financial advisors offer the same services or charge the same way. Here’s a quick look at a few of the most common types of financial advisors:

• Certified Financial Planners (CFP®s). CFP®s are trained to create comprehensive financial plans, covering everything from investments to retirement to estate planning. They’re held to a fiduciary standard, which means they’re required to put your best interests first.
• Investment advisors. These advisors focus mainly on managing your investment portfolio. Some also offer broader financial guidance, but their main goal is to help you grow your money.
• Robo-advisors. If you prefer a digital approach, robo-advisors use algorithms to manage your investments automatically. They’re often more affordable, but they offer less personalized advice than a human advisor.

The cost of a financial advisor can vary depending on the charging model they use. You might pay a flat fee, an hourly rate, a percentage of your assets under management, or commissions from certain products.

What a financial advisor doesn’t do

Financial advisors can do plenty, but there are a few important things they don’t do (and shouldn’t promise to).

Here’s what to know:

• They don’t guarantee investment returns. Even the best advisor can’t predict or control the market. Their role is to help you manage risk, stay on track, and make informed decisions, not promise outsized gains.
• They aren’t therapists. Money is emotional, no question. While a good advisor will listen and understand your concerns, they’re not a substitute for mental health support if you’re working through deeper anxieties.
• They usually don’t replace your CPA or attorney. Financial advisors often coordinate with other professionals, but they’re not tax preparers or estate attorneys. Complex tax moves or legal documents usually require other specialists. Explore the differences between CPAs and financial advisors to learn which one you might need.
• They aren’t just for millionaires. You don’t need a six-figure portfolio to work with a financial advisor. Many advisors specialize in helping everyday people plan, save money, invest, and build wealth over time.

How financial advisors help in real life

You don’t need to be wealthy or nearing retirement to benefit from financial advice. Here are a few common scenarios where working with a financial advisor can offer clarity, strategy, and peace of mind:

• You’ve changed jobs, and your finances feel scattered.
  After a few career moves, it’s easy to lose track of old 401(k)s, inconsistent savings habits, or gaps in insurance. A financial advisor can help you roll over retirement accounts, audit your current financial setup, and create a plan to support new goals—like buying a home, saving for your child’s education, or building a stronger emergency fund.
• You’re getting close to retirement and want to make your money last.
  You’ve spent decades saving—but now what? An advisor can help you turn that nest egg into reliable income, building a withdrawal strategy that balances taxes, healthcare costs, and market uncertainty. That way, you can enjoy retirement without second-guessing your spending.
• You’re self-employed and your income changes every month.
  Variable income can make it hard to plan beyond the next client payment. A financial advisor can help you map out monthly expenses, build a buffer for slower seasons, and automate savings for retirement and taxes. They’ll also help you choose retirement accounts that offer the biggest tax perks, like a solo 401(k) or SEP IRA.

Not sure how to find someone who understands your stage of life? Money Pickle is the No. 1 financial advisor matching service we recommend. It offers a free, no-pressure call with a vetted CFP®—so you can ask questions, get advice, and see what working with a planner actually feels like.

Notably, a 2025 study by the CFP® Board found that 78% of individuals working with a CFP® professional have at least three months’ worth of income saved in an emergency fund, compared to 68% of those working with non-certified advisors and only 53% of those without any advisor. This shows how working with a certified professional can really help.

How to know if you need a financial advisor

You don’t need to hit a certain income level or asset minimum to benefit from financial advice. But there are a few signs it might be worth getting some help.

For example, you might need a financial advisor if: 

• You have complex or competing goals (like saving for retirement, college, and a home)
• You feel overwhelmed or anxious about your money decisions
• You’re entering a new life stage—starting a family, changing careers, getting divorced, or nearing retirement
• You’d rather spend your time living life than researching tax rules and investment strategies

That said, plenty of people manage their finances on their own, and that can work well too.

DIY might make sense if:

• Your goals are relatively simple and short-term
• You enjoy researching financial topics and making money decisions solo
• You already have a clear plan you feel confident about

What to expect when working with a financial advisor

Working with a financial advisor doesn’t have to feel intimidating or formal. It can even be enjoyable once you find a financial advisor you click with.

Here’s what the process typically looks like:

1. Discovery session or intro call

You’ll start with a short meeting to talk about your current financial situation, your goals, and whether the advisor is a good fit for your needs. Many services (like Money Pickle) offer this part for free.

2. Goal setting

Next, you’ll clarify your financial goals—like buying a home, saving for retirement, or getting a better handle on day-to-day spending. A good advisor will help you prioritize and stay focused.

3. Financial snapshot and document collection

You’ll gather documents related to your income, debts, savings, investments, and insurance. This gives the advisor a full view of your finances and helps them tailor their recommendations.

4. Plan delivery and review

The advisor will create a custom plan based on your goals, resources, and values. You’ll review it together, ask questions, and make any needed adjustments.

5. Implementation and check-ins

If you decide to move forward, the advisor will help you take action, setting up accounts, automating savings, or making investment changes. Some also offer ongoing support and regular check-ins to keep you on track.

Personally, I think everyone could use a financial advisor, and the sooner you find one, the sooner you can get on track; you will likely be more financially successful and at a younger age.

How to find the right advisor for you

Finding a financial advisor doesn’t require you to cold-call firms or sit through awkward sales pitches. Today, there are platforms that make it easier to connect with someone who actually fits your goals, values, and communication style.

Here’s how to get started:

• Try a free discovery call. Book a 45-minute chat with Money Pickle, and talk to a vetted advisor at no cost and with no pressure to commit.
• Decide what kind of help you’re looking for. Do you want someone to manage your investments, walk you through a full financial plan, or just answer your questions and sense-check your strategy? Knowing your needs can help you narrow the field.
• Vet certifications and experience. Look for fiduciary advisors (those required to act in your best interest) and credentials like CFP®, CFA®, or RIA, depending on what kind of support you’re after. (Not sure what all those titles mean? This guide breaks it down: 8 Types of Financial Advisors to Know.)
• Use comparison tools. You can also explore advisor-matching platforms like Zoe Financial, Facet Wealth, or Wealthramp.

FAQs

Do I need a financial advisor if I’m good with money?

Not necessarily, but it can still help. If you’re confident managing your budget, savings, and investments, you might not need day-to-day advice. However, a financial advisor can add value during major life changes—like retirement planning, starting a business, or handling an inheritance—or by offering a second opinion to make sure you’re on track.

Are financial advisors worth it for middle-income earners?

Yes, especially if you want help reaching long-term goals. A good financial advisor can help middle-income earners build wealth, reduce debt, plan for retirement, and avoid costly mistakes. Even occasional check-ins can make a difference, and many advisors now offer flexible or flat-fee options if you’re not looking for full-time management.

Is it better to use a robo-advisor or a human one?

It depends on your needs and comfort level. Robo-advisors are great for simple, low-cost investment management—ideal if you want a hands-off, tech-driven solution. But if your finances are more complex or you want personalized guidance and planning (including taxes, insurance, or estate issues), a human advisor is the better choice.

Can a financial advisor help with taxes?

Yes, many financial advisors offer tax planning as part of their services. While they usually don’t prepare your tax return (that’s a CPA’s job), they can help you make smart, tax-efficient decisions throughout the year, like optimizing retirement contributions, managing capital gains, or using tax-loss harvesting.

How often should I meet with a financial advisor?

At least once a year is a good baseline, but it depends on your situation. If you’re actively working toward a financial goal or going through a big life change, meeting quarterly or semiannually can help you stay on track. Many advisors also offer check-ins on an as-needed basis if something urgent comes up.