The Price of Good Advice: 3 Ways a Financial Adviser Can Save You Money
It's always a good idea to know how much you're paying for financial help, but what might be just important (or more so) is how much you could be saving by getting good advice.


When someone asks me how much I charge for the work I do, I’m never quite sure how to respond.
I can explain that it depends on the investment and insurance products I offer, or the advisory services I’m providing, and we can discuss how it all breaks down in dollars or percentages.
But I’ve found that what most people really want to know is if I’m less expensive than their guy — and that’s a more complicated answer. Sometimes their guy is with a firm that’s strictly doing investment management. Or it’s a robot — what some call a robo-allocator — again, doing investment planning only.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The person who’s asking — maybe it’s a friend or perhaps just an acquaintance — might even be managing his portfolio by himself. You can’t get much less expensive than that.
But it’s apples to oranges.
So we end up in a conversation about fee comparison and online trading and intense pricing competition, when what we should be talking about is what it’s going to cost him, and his family, if he doesn’t have the guidance of an adviser who strictly focuses on retirement and financial planning.
In the same amount of time it takes to explain how fees work, I could share three ways an experienced, knowledgeable adviser earns his money — especially when a client is closing in on retirement.
1. Tax planning.
Unless you’re working with a financial professional who offers comprehensive planning, you aren’t going to get a forward-looking tax strategy that deals with the money within or outside of your retirement accounts. Both have their consequences. The money in your IRAs will be a factor when you retire, because it can affect your tax bracket in a way you don’t expect. Your taxable accounts already may be causing problems you don’t even know about, if they’re actively traded. Either way, an adviser can help keep taxes down on money you aren’t using as income.
2. Health care, long-term care and estate planning.
Maybe you’re doing your own planning, or using a very low-cost mutual fund company. If so, you likely aren’t going to get any advice regarding the future costs of health care or long-term care, or help with providing a legacy for your family when you pass away. Many people overlook these issues until it’s too late — and these “unexpected” costs can devastate a family.
3. Income planning.
You may be working with a financial professional who’s doing a good job accumulating money for your retirement — but if you don’t have a solid distribution plan in place, you still could come up short or lose a large chunk of your money to inflation, taxes or too much risk. I often meet people who have no systematic strategy for withdrawing money based on their assets. They have no idea when to file for Social Security. And they’re stressed out because they don’t have any other cash flow coming in.
There’s no question that in this business, or any business, you must be competitive. But consumers should be aware that, particularly going into retirement, they benefit from a higher level of help.
A retirement plan is a complex puzzle that needs to be put together properly. Just like any puzzle, if you’re missing even one piece, it’s not complete. And that gap could cause the whole thing to fall apart.
Investment advisory services offered through Global Financial Private Capital, LLC. Bryan Slovon does not provide specific legal or tax advice. Please consult with your tax advisor or legal professional for guidance with your individual situation.>/i>
Kim Franke-Folstad contributed to this article.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Bryan S. Slovon is founder and CEO of Stuart Financial Group, a boutique financial services firm exclusively serving retirees and soon-to-be retirees in the D.C. metro area. He is an Investment Adviser Representative and insurance professional focusing on retirement planning and wealth preservation to a select group of clients. (Advisory services offered through J.W. Cole Advisors, Inc. (JWCA). Stuart Financial Group and JWCA are unaffiliated entities.)
-
The Final Countdown for Retirees with Investment Income
Retirement Tax Don’t assume Social Security withholding is enough. Some retirement income may require a quarterly estimated tax payment by the September 15 deadline.
-
Hot August CPI Report Doesn't Shift the Rate-Cut Needle: What the Experts Say
The August CPI came in higher than forecast on a monthly basis, but Wall Street still expects a rate cut at next week's Fed meeting.
-
Four Clever and Tax-Efficient Ways to Ditch Concentrated Stock Holdings, From a Financial Planner
Holding too much of one company's stock can put your financial future at risk. Here are four ways you can strategically unwind such positions without triggering a massive tax bill.
-
Beyond Banking: How Credit Unions Serve Their Communities
Credit unions differentiate themselves from traditional banks by operating as member-owned financial cooperatives focused on community support and service rather than shareholder profit.
-
Answers to Every Early Retiree's Questions This Year, From a Wealth Adviser
From how to retire in a crazy market to how much to withdraw and how to spend without feeling guilty, a financial pro shares the advice he's given this year.
-
The Risks of Forced DST-to-UPREIT Conversions, From a Real Estate Expert
Some new Delaware statutory trust offerings are forcing investors into 721 UPREIT conversions at the end of the hold period, raising concerns about loss of control, limited liquidity, opaque valuations and unexpected tax liabilities.
-
I'm a Financial Adviser: You've Built Your Wealth, Now Make Sure Your Family Keeps It
The Great Wealth Transfer is well underway, yet too many families aren't ready. Here's how to bridge the generation gap that could threaten your legacy.
-
Want to Advance on the Job? Showing Some Courtesy and Appreciation Could Help
Two business professors share their insights about the impact of digital communication on the social skills of some in Gen Z and the importance of good manners on the job.
-
From Job Loss to Free Agent: A Financial Professional's Transition Playbook (and Pep Talk)
The American workforce is in transition, and if you're among those affected, take heart. You have the skills, experience and smarts that companies need.
-
A Financial Planner's Top Five Items to Prioritize When Your Spouse Is Ill
During tough times, it's easy to overlook important financial details, but you'll be so much better off if you take care of these things right now.