Quiz Do You Need a Financial Adviser? By the editors of Kiplinger's Personal Finance Updated for 2018 Getty Images Good leaders know when to delegate, and when to seek expert opinions. So as the leader of your personal finances, you shouldn't be afraid to consult a financial planner — when appropriate. Here are 10 scenarios to help you determine when it makes sense to hire a professional to provide investment and financial advice. Planners typically charge a flat fee of $100 to $500 an hour for their advice. If they also manage your money, they’ll typically charge you a percentage of assets, around 1% to 2%, less for larger accounts. Take our quiz to learn the right times to seek support along your financial journey. Good luck! Start Quiz Quiz | Do You Need a Financial Adviser? Question 1 of 10 You need help tracking your monthly finances. Should you consult a financial planner? A. Yes B. No Quiz | Do You Need a Financial Adviser? Question 1 of 10 You need help tracking your monthly finances. Should you consult a financial planner? A. YesB. No A planner's job is to solve tax or investment problems, help you deal with your estate and coach you toward long-term goals. If you simply want to get more organized, download a software program such as Quicken. Or try an online money tracking Web site such as Mint.com. Next Question Quiz | Do You Need a Financial Adviser? Question 2 of 10 You’re 54 and your goal is to have $1.2 million in your portfolio by the time you retire at age 62. So far you have $450,000 socked away. Should you consult a financial planner? A. Yes B. No Quiz | Do You Need a Financial Adviser? Question 2 of 10 You’re 54 and your goal is to have $1.2 million in your portfolio by the time you retire at age 62. So far you have $450,000 socked away. Should you consult a financial planner? A. Yes A planner may not be able to help you achieve a 13% annualized return, which is what it would take to reach your objective without any additional savings. That’s awfully ambitious. But good, ethical planners will help you to set realistic expectations (they can’t guarantee results). You'... Read more ˅ A planner may not be able to help you achieve a 13% annualized return, which is what it would take to reach your objective without any additional savings. That’s awfully ambitious. But good, ethical planners will help you to set realistic expectations (they can’t guarantee results). You'll fill out a questionnaire before your first meeting, which should be free and informal. Part of the survey will discuss your investment style and your expectations. Less ˄ B. No Next Question Quiz | Do You Need a Financial Adviser? Question 3 of 10 The current bull market is the second longest on record, but you're worried that the party could be coming to an end soon. Should you consult with a financial adviser about your bear market fears? A. Yes B. No C. It depends Quiz | Do You Need a Financial Adviser? Question 3 of 10 The current bull market is the second longest on record, but you're worried that the party could be coming to an end soon. Should you consult with a financial adviser about your bear market fears? A. Yes If you're properly diversified, with a solid, long-term financial plan in place, you shouldn't be lying awake at night. So, the fact that you're worried may mean you could use a reality check to make sure you are properly invested, with an appropriate level of risk for your age and situation. And if... Read more ˅ If you're properly diversified, with a solid, long-term financial plan in place, you shouldn't be lying awake at night. So, the fact that you're worried may mean you could use a reality check to make sure you are properly invested, with an appropriate level of risk for your age and situation. And if you're considering doing something drastic, then definitely do seek some professional help, because knee-jerk reactions and attempts to time the market rarely lead to positive outcomes for investors. Less ˄ B. NoC. It depends Next Question Quiz | Do You Need a Financial Adviser? Question 4 of 10 You don't contribute regularly to your 401(k) at work. You hear that stocks are the best investment for the long term, but the market looks risky to you. Should you consult a financial planner? A. Yes B. No Quiz | Do You Need a Financial Adviser? Question 4 of 10 You don't contribute regularly to your 401(k) at work. You hear that stocks are the best investment for the long term, but the market looks risky to you. Should you consult a financial planner? A. YesB. No At least not as a first step. Save the $1,000 you might have spent on a planner to hear advice you probably know already: Leaving your money on the sidelines is the surest way to lose in the long run. Arrange for a fixed sum to go into your retirement plan every month. Your HR department can ... Read more ˅ At least not as a first step. Save the $1,000 you might have spent on a planner to hear advice you probably know already: Leaving your money on the sidelines is the surest way to lose in the long run. Arrange for a fixed sum to go into your retirement plan every month. Your HR department can help you take care of this in no time at all. If you feel clueless about HOW to invest that money, however, you may find it helpful to get advice — and, perhaps, some reassurance — from a planner. Less ˄ Next Question Quiz | Do You Need a Financial Adviser? Question 5 of 10 You have multiple retirement accounts invested in dozens of different funds. Your spouse has another set of accounts. You both contribute regularly. Your accounts have grown exponentially, thanks to the long-running bull market. Should you consult a financial planner? A. Yes B. No Quiz | Do You Need a Financial Adviser? Question 5 of 10 You have multiple retirement accounts invested in dozens of different funds. Your spouse has another set of accounts. You both contribute regularly. Your accounts have grown exponentially, thanks to the long-running bull market. Should you consult a financial planner? A. Yes A good planner can improve a haphazard portfolio by analyzing its risks and returns, its redundancies and unnecessary investments, and the fees and taxes you’re paying. You can pay for ongoing service, or you might get a one-time-only “X-ray,” or portfolio analysis, for a few hundred do... Read more ˅ A good planner can improve a haphazard portfolio by analyzing its risks and returns, its redundancies and unnecessary investments, and the fees and taxes you’re paying. You can pay for ongoing service, or you might get a one-time-only “X-ray,” or portfolio analysis, for a few hundred dollars. Less ˄ B. No Next Question Quiz | Do You Need a Financial Adviser? Question 6 of 10 You have a lump sum to invest, and you're thinking about buying an annuity. Should you consult a financial planner? A. Yes B. No Quiz | Do You Need a Financial Adviser? Question 6 of 10 You have a lump sum to invest, and you're thinking about buying an annuity. Should you consult a financial planner? A. Yes An annuity could be a great idea, or a lousy idea. It depends on your specific circumstances. What you need is independent advice that looks at your whole financial picture. B. No Next Question Quiz | Do You Need a Financial Adviser? Question 7 of 10 You have a crazy dream. Maybe you want to retire early and volunteer to do good work abroad. Or go into business for yourself. The numbers don't seem to add up, but you're determined to find a way. Should you consult a financial planner? A. Yes B. No Quiz | Do You Need a Financial Adviser? Question 7 of 10 You have a crazy dream. Maybe you want to retire early and volunteer to do good work abroad. Or go into business for yourself. The numbers don't seem to add up, but you're determined to find a way. Should you consult a financial planner? A. Yes Just be sure to seek someone who specializes in “holistic” financial planning or “life planning.” You don’t want someone who only knows bonds and tax planning but nothing about what you want to do. A member of the Kinder Institute of Life Planning or the Alliance of Comprehensive Pl... Read more ˅ Just be sure to seek someone who specializes in “holistic” financial planning or “life planning.” You don’t want someone who only knows bonds and tax planning but nothing about what you want to do. A member of the Kinder Institute of Life Planning or the Alliance of Comprehensive Planners will see your situation as a challenge to meet and not a dream to be deferred. Less ˄ B. No Next Question Quiz | Do You Need a Financial Adviser? Question 8 of 10 You've lost faith in the U.S. financial system, and you want to move your money into land and real estate or other more concrete assets. Should you consult a financial planner? A. Yes B. No Quiz | Do You Need a Financial Adviser? Question 8 of 10 You've lost faith in the U.S. financial system, and you want to move your money into land and real estate or other more concrete assets. Should you consult a financial planner? A. YesB. No Planners are not economists, and they rarely endorse unbalanced investment strategies. Be honest with yourself: If you want to move most of your assets into real estate or other hard assets, you’ll probably need more advice than any financial planner can provide. Just remember, you can los... Read more ˅ Planners are not economists, and they rarely endorse unbalanced investment strategies. Be honest with yourself: If you want to move most of your assets into real estate or other hard assets, you’ll probably need more advice than any financial planner can provide. Just remember, you can lose money in this stuff just as easily as you can in stocks and bonds. Less ˄ Next Question Quiz | Do You Need a Financial Adviser? Question 9 of 10 You and your spouse are doing well and want to help support friends or family members with contributions to their college savings or health-care expenses — but you don’t want to be so helpful that they come to think of you as a bank. Should you consult a financial planner? A. Yes B. No Quiz | Do You Need a Financial Adviser? Question 9 of 10 You and your spouse are doing well and want to help support friends or family members with contributions to their college savings or health-care expenses — but you don’t want to be so helpful that they come to think of you as a bank. Should you consult a financial planner? A. Yes Planners will tell you that many of the situations they deal with result from family problems, whether it’s divorce, failure of a family-owned business, jealous relatives or a bunch of other things. To set up appropriate trusts or investment accounts and keep the peace, you need guidance - ... Read more ˅ Planners will tell you that many of the situations they deal with result from family problems, whether it’s divorce, failure of a family-owned business, jealous relatives or a bunch of other things. To set up appropriate trusts or investment accounts and keep the peace, you need guidance - a sensitive adviser or team of advisers will be worth the money. Less ˄ B. No Next Question Quiz | Do You Need a Financial Adviser? Question 10 of 10 You're in your 20s, just getting started in life, and have no more than $500 each month to invest. You're afraid of making rookie mistakes. Should you consult a financial planner? A. Yes B. Probably Not Quiz | Do You Need a Financial Adviser? Question 10 of 10 You're in your 20s, just getting started in life, and have no more than $500 each month to invest. You're afraid of making rookie mistakes. Should you consult a financial planner? A. YesB. Probably Not Learn some lessons — about you, about investing — on your own first. You can find free guidance from your employer, your 401(k) plan sponsor, perhaps a local investors’ organization, or trusted media source such as Kiplinger's Personal Finance magazine and Kiplinger.com. Still feeling... Read more ˅ Learn some lessons — about you, about investing — on your own first. You can find free guidance from your employer, your 401(k) plan sponsor, perhaps a local investors’ organization, or trusted media source such as Kiplinger's Personal Finance magazine and Kiplinger.com. Still feeling unsure? A consultation with a good planner could provide the sounding board and encouragement you need. Less ˄ See Results Quiz | Do You Need a Financial Adviser? Results Next QuizTest Your Annuity Acuity: An Advanced True/False Quiz See All Quizzes answer_num=2,1,1,2,1,1,1,2,1,2|answer_text="B. No","A. Yes","A. Yes","B. No","A. Yes","A. Yes","A. Yes","B. No","A. Yes","B. Probably Not"|total_questions=10|url=/quiz/investing/T023-S001-do-you-need-a-financial-planner-quiz/index.html|total_pages=22|page_id=10472|evaltext_num=0|kipad_id=FinancialPlanningQuizzes Advertisement Advertisement Sponsored Financial Content