I’m in my 30s earning over $100k. Do I need a financial adviser?

I’m in my mid-30s. I don’t have a partner or kids, and I’m earning over $100,000. I’ve spent the last five years or so years improving my finances, so I don’t have any debt, I save a good amount of money, I’ve also changed my super to a fund and portfolio I’m happy with. I want to start investing, and I’ve read up on ETFs, but I’m lacking the confidence to take the leap. I’m wondering if I should work with a financial adviser instead of trying to DIY my finances?

Firstly, it sounds like you’ve come a really long way on your own. Well done! Here are some things you want to get clear on before engaging a financial professional:

If you’re expecting a financial adviser to be able to work some magic with your finances, you might leave disappointed.Credit: Simon Letch

Are you paying for results, or peace of mind? In the stories I hear about people who aren’t happy with their financial advice experience, I frequently find that there was a lack of clarity around why they even wanted one.

In your situation, where you’ve done some of the legwork already, it’s important to have reasonable expectations of what you’ll get from the process.

Are you expecting a big financial uplift, or some sort of magic trick that only financial advisers know? Will you be disappointed if they just validate what you’ve already done, or make a few simple recommendations that you feel you could have figured out on your own?

It sounds like what you might really be after is confirmation and peace of mind. There’s nothing wrong with this. Some people get a lot of peace of mind out of having a professional confirm things.

It can feel easier to hand it off to someone else. But, if you do the work and build confidence, that will serve you well longer-term.

However, it’s important to be clear that that’s your objective going in, so if the process doesn’t reveal any big opportunities, you’re still content having paid their fees for peace of mind.

What specifically do you want help with? Many people engage a financial professional without any clarity on what they want help with. It’s a vague “help me with my finances” attitude, which leaves a lot of room for disappointment.

That’s like going into a hairdresser with no idea what you want done, but expecting they’ll know what to do because they’re professionals. Sure, they’ll do what they think is best – but you’ll then have to accept whatever you get, whether or not you like it. You’ll get far more out of the process if you’re clear about what you actually want.

In your case, it sounds like the main thing is investing. Even then, it seems like you’ve narrowed your research to ETFs already. So, what do you want the professional’s help with?

Do you want them to invest and manage the investments for you? Do you want them to design an investment plan for you (which they’ll probably want to implement for you as well)?

Would you be comfortable with them investing in products other than ETFs? How much are you willing to pay for this, given that you can invest on your own far more cost effectively?

To me, it sounds like you’re looking for someone to validate that you’re on the right track, and maybe give you some confidence to pull the trigger. Does that need a financial adviser?

Are you trying to outsource decision-making or execution? I think of professionals as being part of your finance team – but at the end of the day, you’re still the captain of the team, and you still need to take charge.

This is where a lot of people leave themselves vulnerable to risk. They depend on professionals for the decision-making, instead of only outsourcing execution.

This approach feels easier, short-term. You hope that the financial adviser is leading you down the right path. You don’t feel the pressure of making the right decision, yourself.

The alternative path puts more of the pressure on you. It’s your responsibility to figure out what direction you want to go in, what decisions you would like to make, and then the adviser’s role is more about informing you about different options and helping with implementation.

I’d argue this is the way it should be. You should always be in the driver’s seat of your finances.

So, would you still want to hire a financial adviser if you had the mindset that you’re responsible for the ultimate decision? Or are you secretly hoping to hand that responsibility to someone else, so you don’t have to shoulder it?

In the short-term, it can feel easier to hand it off to someone else. But, if you do the work and build the confidence to take it on yourself, that will serve you well longer-term. Then, if you ever do engage a professional later on, you’re doing so from a position of strength, not insecurity.

Paridhi Jain is the founder of SkilledSmart, which helps adults learn to manage, save and invest money through financial education courses and classes.

• Advice given in this article is general in nature and not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

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