How Working With a Financial Advisor for Law Firm Owners Could Pay for Itself
As a business owner, every decision you make should weigh ROI—return on investment—even the decision to hire a financial advisor. So it’s a fair question to ask, “What exactly do I get out of working with a financial advisor, and is it worth it?”
It’s a great question. And while we’re not permitted to make promises or flashy guarantees since we’re held to pretty high regulatory standards, I can walk you through a few real-world, hypothetical examples of how working with a financial advisor who really understands law firm owners might actually pay off and then some.
Let’s break it down.
#1 Tax Planning for Attorneys: Stop Leaving Money on the Table
Taxes are one of your largest expenses. And yet, most law firm owners are unknowingly overpaying. According to a Forbes article in 2015, 93% of small business owners are paying more taxes than they legally need to thanks to poor planning. A little proactive planning can go a long way. Things like:
Choosing the right entity structure
Maximizing deductions
Taking advantage of strategic opportunities like Roth conversions
Of course, ever situation is different, but smart tax planning can save you hundreds of thousands of dollars over your life time—maybe millions.
#2 Business Planning That Can Grow Your Revenue
As financial advisors who work with law firm owners, we understand that your business is your number 1 priority. That’s why we go beyond the portfolio and dive into real law firm business planning—aiming to improve profitability, cash flow, and growth. Not many financial advisors include business planning in their services or have business planning experience like we do.
For example:
We’ve helped attorneys delegate low-value work so they can focus on growth
We’ve restructured pricing to reflect the actual value delivered
We’ve built business plans that map out how to get from “burned out” to “business owner with options.”
Could these activities increase revenue? Sure. Could it also help you reclaim your time? Absolutely.
As a business owner, your business is your easiest pathway to wealth. Pulling the right levers can exponentially increase your revenue and long term wealth.
#3 Smart Investing and Less Emotion
A lot of attorneys I meet are DIY investors. And many are doing a fine job. But here’s the thing—managing a portfolio isn’t just about picking stocks or funds. It’s about managing behavior.
Vanguard did a study that showed working with a financial advisor could add around 3% in net returns annually—not because we’re market magicians, but because of things like:
Staying disciplined during market swings
Tax-smart rebalancing
Tax efficient asset location
If you’ve ever panicked during a downturn or second guessed yourself in a hot market, you know how valuable that behavioral coaching can be.
#4 Protecting What You’ve Built
It’s not the sexiest part of financial planning, but risk management is important. What happens to your income if you get sick? Who will run the firm and keep the doors open? Or what if your business partner exits? Or your key employee quits? Or something else unexpected happens?
We help law firm owners protect themselves through;
Insurance planning
Entity structuring
Estate planning coordination
Contingency planning
Succession planning
Sometimes the best ROI is the problem that didn’t happen.
#5 Peace of Mind and More Time
Here’s something that doesn’t show up on a spreadsheet: When you’re not carrying the weight of your finances alone, you might breathe easier.
You may sleep better
You may be more confident
You may make better decisions
And you might finally have time to focus on what lights you up—whether that’s growing your firm, spending time with family, or taking that vacation you’ve been putting off. Knowing you’re on track to your financial goals is powerful. We call that “return on life.” And it’s the biggest ROI you could ask for.
We help our clients get their financial house in order—business and personal—so they can live with confidence.