Short answer: Yeah, most of them do. But it is not for the reasons you might think.
I spent a few years working adjacent to some pretty wealthy people, and this question came up all the time. Usually from folks who were doing well but not millionaire well, wondering if they should bother with professional financial help. Let me share what I have observed.
Why Would Someone With Money Need Help With Money?
Seems counterintuitive, right? If you are rich, should you not already be good with money? Here is the thing I learned: being good at making money and being good at managing money are two completely different skills.
I knew a guy who sold his tech startup for about $15 million. Brilliant engineer, truly. But ask him about tax-loss harvesting or estate planning or how to structure a trust for his kids? Complete deer in headlights. He hired a financial advisor within two weeks of the sale, and he is the first to admit it was one of his best decisions.
What Advisors Do For Wealthy Clients
It is not just about picking stocks. Actually, that is probably the least important part for most millionaires. Here is what I have seen advisors handle:
Tax stuff gets complicated fast. Once you have money in different accounts, investments throwing off dividends and capital gains, maybe some rental properties or business income… the tax picture becomes a nightmare. Good advisors coordinate with CPAs to minimize what goes to Uncle Sam. Legally, obviously.
Estate planning is a real thing. Nobody likes thinking about dying, but if you have got significant assets, you need to plan what happens to them. Trusts, beneficiaries, avoiding probate, minimizing estate taxes – this is stuff that matters more as wealth grows.
Asset protection. When you have money, people want it. Lawsuits, creditors, whatever. Wealthy folks need strategies to protect what they have built. That might mean specific types of trusts, insurance policies, or business structures.
The emotional part. This surprised me. Turns out making big financial decisions when millions are on the line is stressful. Having an objective third party to bounce ideas off of? That is valuable. One guy I knew said his advisor main job was stopping him from panic-selling during market downturns. Worth every penny, apparently.
Not Every Millionaire Uses an Advisor Though
I should be fair here. I have met wealthy people who manage everything themselves. Usually they fall into a few categories:
Finance professionals or former finance professionals. Makes sense – they already know this stuff. My neighbor worked at Goldman for 30 years. He does not need an advisor, he WAS the advisor.
People who genuinely enjoy it. Some folks treat managing their portfolio like a hobby. They read the reports, follow the markets, love the research. If that is you and you are good at it, okay, maybe you do not need to pay someone else.
The skeptics. Some wealthy people do not trust financial advisors. They have heard the horror stories about fees eating into returns or advisors churning accounts for commissions. I get it – there are some bad actors out there. But throwing out the whole profession because of some bad apples seems extreme to me.
The Real Reason Most Use Advisors: Time
Here is what nobody talks about enough. Most millionaires I have met are busy. Like, really busy. They are running businesses, maintaining their careers, managing properties, raising families. They do not have 10 hours a week to research investments and monitor markets and stay up on tax law changes.
So they delegate. Same reason they hire accountants, lawyers, maybe even personal assistants. It is not that they CAN NOT do it themselves. It is that their time is worth more doing other things.
I talked to one business owner about this, and he put it simply: I could learn to manage my own investments, or I could use that time to grow my business. Growing my business makes more money than I would save by doing my own investing.
What To Look For If You Are Getting There
If you are building wealth and thinking about getting professional help, here is what I would suggest based on what I have seen work:
Find someone who works with people like you. An advisor who mostly works with retirees might not be the best fit if you are a 35-year-old entrepreneur. Different life stages and wealth levels have different needs.
Understand how they are paid. Fee-only advisors charge you directly and do not earn commissions. Some people prefer this because the incentives are cleaner. Others are fine with commission-based as long as it is transparent. Just know what you are getting into.
Check their fiduciary status. Fiduciaries are legally required to act in your best interest. Not all financial professionals are fiduciaries. Ask directly.
Communication matters. You want someone who explains things in a way you understand and who is available when you have questions. The fanciest advisor in the world is useless if you can not reach them or can not understand what they are saying.
My Take
I am not a millionaire (yet, fingers crossed), but if I were? Yeah, I would use an advisor. Not because I am not smart enough to handle my own money – I think I am reasonably competent. But because I have seen how complicated it gets at higher wealth levels, and I know my limitations.
The best wealthy people I have known treat their financial advisor as a partner. Not someone who tells them what to do, but someone who helps them think through decisions and execute on a plan. There is a relationship built on trust, and the advisor knows their whole financial picture.
Is it worth the fees? For most wealthy people, the answer seems to be yes. The tax savings alone often pay for the advisor, not to mention the peace of mind and the time freed up for other priorities.
But like everything in personal finance, it is personal. There is no rule that says you have to use an advisor just because you have money. Just make sure whatever choice you make is intentional and informed.
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