When Should You Hire a Wealth Advisor?

Hiring a wealth advisor isn’t just for millionaires, and it also isn’t automatically a smart move the moment you start earning good money. The right time depends less on a single dollar amount and more on the complexity of your finances, the size of your investable assets, and what you need help with. Still, there are useful money thresholds that can guide the decision.

Start with what you actually need

Before focusing on net worth, get clear on the job you want done. A wealth advisor can help with:

• Building and managing an investment portfolio
• Retirement planning and withdrawal strategy
• Tax strategy and coordination with a CPA
• Insurance planning (life, disability, liability coverage)
• College planning and cash-flow decisions
• Estate planning coordination with an attorney
• Ongoing accountability and behavior coaching during market swings

If you mostly need budgeting help or debt payoff structure, a financial coach or a one-time planning session may be a better fit than full-time wealth management.

The most common “money” thresholds

There’s no universal minimum, but these ranges reflect how advisory services are typically priced and when they start to feel worth it.

Under \$50,000 in investable assets: usually too early for full-time management

If your investable assets (money you can invest outside of emergency savings) are under \$50,000, a traditional wealth management relationship may be expensive relative to what you gain. Many advisors charge a minimum annual fee or require a minimum portfolio size.

What often makes sense instead:

• A one-time financial plan (fixed fee)
• An hourly advisor for targeted questions
• Automated investing plus a basic tax strategy

\$50,000–\$250,000: consider advice if you have complexity

In this range, hiring a wealth advisor can make sense if your situation is getting complicated, such as:

• Stock compensation (RSUs, options, ESPP)
• Large cash savings you’re unsure how to invest
• Starting a business or buying rental property
• Big life changes (marriage, divorce, inheritance, relocation)

If your finances are straightforward, you might still do well with a one-time plan and annual check-ins rather than ongoing management.

\$250,000–\$1,000,000: often a practical time to hire

This is where advisory value can become more noticeable. Portfolio mistakes get more expensive, and tax decisions start to matter more. Many advisors price as a percentage of assets (often around 0.5%–1.25% depending on services and size). On a \$500,000 portfolio, even 1% is \$5,000 per year—worth paying only if you’re getting real planning, tax coordination, and disciplined portfolio management.

Common reasons people hire at this level:

• Wanting a clear retirement timeline and strategy
• Reducing taxes through better asset location and tax-loss harvesting
• Coordinating multiple accounts (401(k), IRAs, brokerage, HSA, 529)
• Stress reduction and time savings

\$1,000,000+: wealth management becomes more about structure and protection

At seven figures, the questions tend to shift:

• How do you reduce taxes over decades, not just this year?
• Should you add trusts, gifting plans, or charitable strategies?
• How much risk is actually necessary to meet goals?
• How do you plan for heirs, property, and long-term care?

At this level, advisory fees can still be large in dollars, so it’s important that the advisor provides more than investment picks. You’re often paying for coordination and strategy.

A better rule than a single number: pay attention to “financial complexity”

You may want a wealth advisor sooner than the asset thresholds if you have any of these:

• Two incomes and multiple benefits plans to coordinate
• High tax bracket and limited time to plan
• Dependents and a need for insurance review
• A business with uneven cash flow
• A sudden liquidity event (sale of a company, settlement, inheritance)

Complexity is often the real trigger—not wealth.

What you should have in place before hiring

Even if you hire early, you’ll get better results if you already have:

• An emergency fund (often 3–6 months of expenses)
• High-interest debt under control
• A clear estimate of monthly spending
• Basic goals: retirement age range, major purchases, family plans

An advisor can help refine all of this, but you’ll move faster if the basics aren’t missing.

Picking the right type of advisor for your level

• Hourly or project-based planner: great for under \$250,000 or for targeted decisions
• Retainer advisor (monthly/annual fee): good when you want ongoing planning without tying cost to portfolio size
• AUM (percentage of assets) advisor: can fit well when portfolio management and planning are both valuable and the service is comprehensive

A common starting point for hiring a wealth advisor is around \$250,000 in investable assets, but plenty of people benefit earlier if their finances are complex. If your situation is simple, you can wait longer and use one-time planning help. The best time to hire is when the cost is clearly outweighed by better decisions, fewer mistakes, and a plan you’ll actually follow.