A 2025 Northwestern Mutual survey found that Americans think it will take $1.26 million to retire comfortably.
Must Read
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
- Robert Kiyosaki says this 1 asset will surge 400% in a year — and he begs investors not to miss its ‘explosion’
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAP
But a 2022 Federal Reserve survey revealed Americans aged 65 to 74 have a median of $200,000 saved for retirement (2).
So clearly, the typical retiree has a large gap to overcome.
If you’re nearing retirement with a $2 million portfolio, you’re clearly ahead of the curve. Not only do you have way more assets than the typical American your age, but you also have more than the $1.26 million per person that’s supposed to make for a comfortable retirement.
But you may be wondering if it pays to hire a financial planner to help manage your retirement portfolio. And the truth is, there are pros and cons to getting financial help.
The case for using a financial planner
If you have $2 million in assets, and plan to work for another year or two more, have a paid-off home, and no major financial concerns, you might assume that you don’t need a professional to help guide your financial decisions. But there’s a reason 27% of Americans (2) have a financial advisor or planner.
The upside of working with a financial professional is that you’ll have an expert who isn’t emotionally attached to your money offering advice on how to manage your assets. That could be invaluable, especially if life ends up throwing you a curveball.
Things may be going well for you financially right now. But what if your life circumstances change, or your health declines and you wind up needing long-term care?
If you’re uninsured, you could be looking at an average of $77,792 per year for a home health aide, says Genworth, while a private room in a nursing home could cost you $127,750 on an annual basis, according to the same study. A financial advisor or planner can help you not only prepare for these types of costs, but manage them as they arise.
Trending: I’m almost 50 and have nothing saved for retirement — what now? Don’t panic. These 6 easy steps can help you turn things around
Also, while you clearly have a decent understanding of saving and investing to have amassed $2 million in time for retirement, there may be some blind spots in your portfolio. A financial professional can help address those and make sure your portfolio is set up to not only produce income, but withstand a major market event or a period of rampant inflation.
Furthermore, if you have $2 million, it’s feasible that you may be in a position to pass on an inheritance, and the value of $2 million today is not the value of $2 million in the future if you leave the money as is, especially if inflation soars. A financial advisor can guide you on estate-planning options so you’re able to make sound decisions for the type of legacy you wish to leave behind.
Finally, working with a financial advisor could help you feel more secure as you navigate your senior years; it takes the pressure off you to be the expert and to stay current. Northwestern Mutual reports that 64% of Americans who have an advisor feel financially secure, compared to just 29% who don’t have one.
The case for managing your finances on your own
The obvious downside to working with a financial professional is that there is an additional cost involved. And that cost can vary depending on who you use, where you’re located, and the fee structure your advisor employs. If you manage your finances on your own, you won’t have to pay a professional any fees.
Let’s say a financial advisor charges you a fee of 1% of assets under management. For a $2 million portfolio, you’re paying $20,000 a year for help you may not need.
Granted, because many financial advisors get paid as a percentage of assets under management, they’re motivated to grow your portfolio so they get paid even more. But once you’re retired, you may not need portfolio growth so much as stable income. And if you’re already getting that, there may be little sense in bringing in an advisor.
Fees aside, there can be other benefits to managing your money on your own. For one thing, not every financial advisor is trustworthy. And not all financial advisors put their clients’ best interests ahead of their own.
If you’ve been able to comfortably build and manage your portfolio all of these years, then you may be perfectly equipped to continue doing so — especially if you’re a savvy investor with a pulse on the market who understands the importance of diversification.
Furthermore, while a financial planner can offer guidance on estate planning, you’ll typically still need an attorney to create a will or trust (or whatever tool you use to pass down an inheritance). So while a financial professional can perhaps steer you toward your ideal option, you’re probably going to be looking at a separate attorney fee anyway.
Before you make your decision, it could be worth sitting down with an advisor or two and seeing what they have to say. But if you’ve gotten to $2 million and are managing this well, you don’t necessarily need to keep paying someone for extra help at this point. Just be sure that before making any major money moves, you’re as informed as possible. You’re essentially your own advisor.
What to read next
- Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich — and ‘anyone’ can do it
- Warren Buffett used 8 simple money rules to turn $9,800 into a stunning $150B — start using them today to get rich (and then stay rich)
- Are you prepared for a recession? Check if you’re missing any of these 10 essential money moves to help you protect your retirement savings
- This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchase. Here’s how to buy the coveted asset in bulk
Join 200,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
The Federal Reserve (1); YouGov (2)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.