Should You Really Hire a Financial Advisor? (Ep. 113)
As a law firm owner, you've mastered the art of building a successful legal practice. But when it comes to wealth management and growing your firm's financial future, should you take a do-it-yourself approach—or is it time to call in a professional? In this episode, I will break down the key considerations every attorney should weigh before deciding whether to hire a financial advisor.
The Law Firm Owner's Dilemma: DIY or Delegate?
Many attorneys are natural DIYers. Your legal training has made you analytical, skeptical, and independent—traits that serve you well in business. With a wealth of books, podcasts, and online tools at your fingertips, it’s certainly possible to manage finances yourself, especially in the early years.
However, as your firm grows—adding employees, increasing revenue, and building complexity—the financial landscape shifts. Suddenly, it’s not just about balancing books or setting aside retirement savings. Now you're navigating evolving tax laws, optimizing firm structure, considering succession or exit planning, and looking for new opportunities to build wealth.
Key Takeaway: You can manage your finances solo, but consider whether it’s the best use of your time, expertise, and resources.
The Real Value of a Financial Advisor for Law Firm Owners
A seasoned financial advisor offers much more than investment picks. Here’s what you stand to gain:
1. Expertise and Insight
Laws and tax codes change, and what worked last year might need a new approach today. Advisors spot blind spots and missed opportunities—like tax strategies or business planning options—that you may overlook while focused on serving your clients.
2. Accountability and Consistency
Knowing what to do doesn’t mean it always gets done. A quality advisor helps keep your finances on track, holds you accountable to your goals, and ensures you’re reviewing and adjusting strategies as your firm evolves.
3. Saving You Time
Imagine freeing up hours each week—time you can reinvest into growing your firm or spending with family. A knowledgeable advisor can handle administrative tasks, complex transitions, and coordinate your financial “to-do” list.
4. Emotional Perspective
Money decisions can get personal. A third-party advisor brings objectivity. During market swings, they help you stay calm and avoid rash decisions that could undermine your financial foundation.
5. Strategic Business Planning
Beyond your personal wealth, great advisors help law firm owners align business strategy with long-term financial goals. From tax planning to compensation models and succession strategies, their expertise is tailored to the unique needs of legal entrepreneurs.
What to Look For in a Financial Advisor
Hiring the right advisor is crucial—here’s what should be at the top of your checklist:
Fiduciary Standard: Confirm the advisor is legally required to act in your best interests. Beware of commission-based compensation or hidden fees.
Transparent Fees: Flat fee or hourly arrangements are often best, ensuring advice isn’t biased by product sales or the size of assets you invest.
Credentials and Experience: The Certified Financial Planner (CFP) designation is the gold standard. Even more important—look for experience working with law firm owners or business leaders like you.
Personalized Advice: Avoid cookie-cutter financial plans. Your advisor should understand (and account for) your firm's structure, goals, and challenges.
Independence: Independent advisors, rather than those tied to large corporate firms, often provide more personalized service and less product-pushing.
Red Flags to Avoid
High-Pressure Sales: If you’re feeling pushed, walk away.
Overly Complex Solutions: Simple investments and business strategies typically outperform convoluted schemes.
No Clear Fee Structure: Never agree to vague or hidden costs.
One-Size-Fits-All Plans: Your law firm is unique—your financial plan should be too.
Insurance-First Approach: An advisor who leads with insurance sales is rarely the right fit.
When Should You Hire a Financial Advisor?
Consider professional help if:
Your firm is growing, and finances are becoming more complex
You lack confidence in your investment or tax strategy
You're preparing for retirement, succession, or major business decisions
You’re making good money but not building lasting wealth
You want more time for your practice and personal life
Think of hiring an advisor not as a sign of weakness, but as a powerful growth strategy. Just as top attorneys don’t represent themselves in court, the savviest law firm owners delegate to experts so they can focus on what they do best.
Connect with Darren Wurz:
Transcript:
Darren Wurz [00:00:00]:
You're smart. You've built a successful law firm from the ground up. You've figured out everything else. So why would you need a financial advisor? Welcome to the Lawyer Millionaire podcast, helping law firm owners go from grind to greatness. I'm your host, Darren Wurz. Let's be honest. Many attorneys could probably handle their finances on their own. But just because you can do it yourself doesn't mean you should.
Darren Wurz [00:00:25]:
Today, we're diving into one of the most important decisions you'll make in your journey to financial freedom. Whether or not to hire a financial advisor. Hey there, and welcome to the show. I'm so glad that you joined us today. First, a quick plug for our book club. Want to sharpen your mindset and connect with other law firm owners doing the same? Join the Lawyer Millionaire book club. Each month, we dive into powerful reads that fuel your growth in business, wealth, and life. It's totally free, and you'll walk away with real strategies you can use.
Darren Wurz [00:00:58]:
Sign up now at LawyerMillionaire.com all right, guys, we're talking about whether or not you should hire a financial advisor. And I'll try to be unbiased here, but, you know, my personal bias may get in the way because I'm a financial advisor. But you know what? I want to help you make good decisions. So, you know, whether you choose to DIY or delegate, whether you choose to work with me or somebody else, I want to make sure that you make the best decision possible. So let me give you some pointers. First of all, diy. Yes, you could DIY. And many lawyers and law firm owners I know are DIYers.
Darren Wurz [00:01:36]:
You know, this fits very well with the typical, you know, lawyer personality. Analytical, skeptical, independent. Right. The way you're trained in law school to be analytical, you could easily probably figure out a lot of financial concepts on your own. Many attorneys are, you know, have already done that, are very, very capable and smart people. And you're naturally skeptical. Skeptical. So there's a high level of trust that any financial advisor would have to meet in order for you to really trust them.
Darren Wurz [00:02:06]:
Working with your money, of course. Right. And, you know, most attorneys that I meet are in that boat. They are handling a lot of finances on their own, and this is not a bad thing. But it does have its limits. So let's talk about what some of those limits are. But before we do that, the case for doing it yourself. Okay.
Darren Wurz [00:02:28]:
The case for doing yourself. Why you could do it yourself. You know, there are a lot of resources out there. There are a lot of books out there like mine, the Lawyer Millionaire, by the way, which is, by the way, meant to be kind of a DIY guide for attorneys and law firm owners on their journey everywhere, from grand graduating law school to retirement. There are lots of podcasts out there. There are lots of tools that can help you. And with discipline and time, you know, most of your financial goals are very attainable, especially in the early stages of practice. DIY may be the best and most cost effective, but there are some deeper reasons.
Darren Wurz [00:03:02]:
I find that many attorneys are doing it themselves. And maybe some of these apply to you. Oftentimes, I find there's a loss of control or fear, right? People are concerned that if I hire somebody, I'll be in the dark about my money. I won't know what's going on. The second one is maybe there is a little bit of pride or ego getting in the way, right? And maybe not necessarily in a bad way. Maybe you simply feel like this is something you should be able to figure out on your own, right? Well, you know, hey, it is not necessarily rocket science, the world of money and finance, but, you know, maybe you want to spend your time elsewhere, figuring other things out, too, and another one. And this is deeper, right? Guilt and shame. I find this is so common among attorneys because, right, you're living in.
Darren Wurz [00:03:56]:
You're working in this very highly competitive field. You have all of these colleagues who seem to be doing really, really well. They're living in nice houses, they have fabulous practices. You know, online, their Instagram, everything looks tremendous, looks wonderful, looks beautiful. And you feel like you should be doing well. But you look at your investment accounts and you look at your bank statements, and you just don't feel like you're measuring up, right? And so maybe there's some guilt or shame involved. You make great money, but you don't feel like you're financially secure and like you're doing things that you need to do well. Let those reasons go, okay? Because there are great people out there who can help you, including me.
Darren Wurz [00:04:38]:
And you know what? I've seen it all. And I've been through it all, by the way, too, right? I've been broke. I've had credit card debt. I've been in the struggle, right? So I get it. I understand it. I know what it's like to be a business owner. I know all of that. I've been in that world.
Darren Wurz [00:04:54]:
I live in that world, right? So there's no shame here, right? It's like going to your doctor. You know, your doctor's gonna see you naked, right? Big deal, right? That is just the reality of things. So there's some great value in working with a financial advisor. Financial advisor can give you insight and expertise. Maybe there's blind spots, right? There are things that you may not know. The world of finance is always changing. The world of taxes is always changing. There are new tax law, there's new retirement laws, right? There was the Secure act, there was the Tax Cuts and Jobs act, you know, of 2017, right? There are constantly new laws and new things being passed and new changes being made, right? This year, Social Security got rid of WEP and the gpo, which is huge.
Darren Wurz [00:05:38]:
Right? There's so many things that are always changing. And you don't know what you don't know if you are not constantly keeping up to date with those things. And so a financial advisor can be helpful in spotting those things you're not aware of, but also your blind spots, right? You don't know what you don't know, right? There are areas of finance you just may simply be completely unaware of because you're not immersed in that world. Secondly, there could be missed opportunities. There might be tax strategies that you're missing. There might be business planning opportunities. There might just be things that you are not particularly thinking about. And a good financial advisor can give you specific advice for your niche for owning a law practice and knowing and understanding how your personal financial life intersects with your firm insights and expertise.
Darren Wurz [00:06:27]:
Another area where a financial advisor can be very, very helpful is accountability. And, you know, I find that this is often my role in working with clients. You know, the information. The information is out there. You can go find the information. And everybody knows that they need to save more money, right? Or they need to be, you know, doing certain things or making better decisions. But again, we're not here to shame anybody, right? We're here to support and promote and educate and help you be way more successful. But a good financial advisor can help you stay more consistent with your savings, with your, you know, reviewing your finances, your investments, with your goal setting.
Darren Wurz [00:07:04]:
You know, it can be so easy to just bury your head in the sand. Oh, I don't want to think about retirement. I've got so many other things to deal with. Right? And certainly you have a lot on your plate, right? You have tons of things that are happening every day. You don't have time to deal with all of this stuff. So. Right. A great financial advisor can help you stay on top of it.
Darren Wurz [00:07:27]:
Also, a good financial advisor can help you on the emotional side of money, can help you avoid panicking when the market goes down or putting all of your money into Nvidia when Nvidia is skyrocketing, right? Or whatever it is, you know, making those bad, life changing financial decisions that could potentially ruin you. If a good financial advisor can help you stay sane, and the last thing is time leverage. You are a busy person. You're busy billing hours, running your firm, growing your firm. Your advisor can act as your personal cfo, freeing you up to focus on what you do best. How much is your time worth? Think about that, right? Is it worth your time to get on the phone with Charles Schwab and try to figure out X, Y and Z? Because you're trying to move money from here to there. You know, a good financial advisor can do all of that for you. That's a great time savings.
Darren Wurz [00:08:27]:
So a couple other things I want you to think about when it comes to hiring an advisor. Let's reframe the question. Instead of thinking about should I hire an advisor, think about it like this. Think about it as a growth strategy. What would I gain by hiring a financial advisor? Right? It's not just about, you know, oh, you know, I need this person to help me out with my personal finances. But in terms of your business, a good financial advisor can help you go deeper into your business strategy, can help you think about how you're retaining your income via tax planning, helping you build out a roadmap for exit planning or retiring early, helping you think about creating passive income from firm value, from real estate portfolio income and other sources. And a really, really tremendously great financial advisor can give you advice that's above and beyond the scope of finance. A good financial advisor has that business savvy that can really help you with all the nitty gritty questions you have about running and operating a law firm.
Darren Wurz [00:09:33]:
You know, questions on hiring, compensation, creating retirement plans for your firm. And by the way, that's what we do, right? Because we understand that your number one priority at the end of the day is managing your law firm effectively. Growing it perhaps, but running it profitably and well. And so we've gone the extra lengths to really make sure that we have a lot of business savvy under our belt. So if you're looking for an advisor, find one that has a lot of business savvy and you know, and leverage that. Use that business savvy, okay? It's not just about investing in the market. It's about making sure your business and your wealth are aligned for long term freedom. And lastly, there is the opportunity cost of not getting help.
Darren Wurz [00:10:20]:
People miss out when they delay, when you wait, right? Not having estate plan or business succession plan, you might think, oh, those are things I need way down the road, you know, but you know, things happen and you know, heaven forbid something should happen to you where you would need that estate plan much earlier than you anticipated. Poorly optimized retirement accounts, underinsured risks, wasted tax strategies, random investing. Without a comprehensive strategy, the most expensive mistake isn't bad advice. It's doing nothing because you were too busy or unsure. So my take, even the, even the most intelligent, highest LSAT scoring attorneys can benefit from an advisor. Think about this. Even the best trial attorneys don't represent themselves in court, right? Expertise matters, but so does your own personal and emotional involvement. And you know what? We are not, you know, it's always easier to do it for somebody else.
Darren Wurz [00:11:26]:
That's why doctors don't treat themselves as patients. You know, financial advisors would be wise not to handle their own money because it's just helpful to have that other person, that third party helping you. A great financial advisor can spot hidden risks, like being underinsured. Underfunded can prevent costly mistakes. You know, when the market does crazy things like the market has been kind of nuts this year, right? A great financial advisor can talk you down off the ledge when you're thinking about panic selling. A great financial advisor can discourage you from, you know, taking out a bad debt that you don't need to take, right? Can help you think through alternative funding strategies, think through different solutions and give you that behavioral coaching in those volatile markets. A great financial advisor can help you filter out the noise and focus on what matters. Let's be honest, there's a lot of noise out there today, folks.
Darren Wurz [00:12:26]:
There's a lot of noise. You know, if you're getting, if you're on Instagram or TikTok or, you know, even LinkedIn long enough, you'll see a lot of bad advice. You'll see a lot of noise. You know, gosh, you know, cnbc, you're on cnbc, you know, and you'll see the advertisements, you know, you'll see that, the billboard on the highway. I was on the highway once and I saw a billboard advertising day trading. And I was like, wow, okay, you know, was it 95% of day traders lose money, you know, are unsuccessful. So, okay, there's so much noise out there, right? There's the guru that you, that pops up on your computer screen when you go to Yahoo. Finance that says, you know, why the market's going to crash in 2026 and what you should do about it.
Darren Wurz [00:13:17]:
Okay. There is so much, much noise out there. It can be helpful to have somebody help you think rationally and to free you from spending hours of pointless researching so that you can do what you do best, which is leading your firm. Okay, let me wrap up with some things to look for in a financial advisor. Number one, the fiduciary standard. Your financial advisor should be a fiduciary and you should ask them if they are a fiduciary. A fiduciary is legally obligated to always act in your best interest. The way you know someone is a fiduciary is if they derive no compensation from commissions.
Darren Wurz [00:13:57]:
No commissions, no product pushing. A fiduciary is going to be paid by you and you alone, not by any other third party. And that way their advice and their recommendations are not going to be skewed by by the compensation that they may potentially receive. Secondly, they should have transparent compensation and they should be able to disclose exactly how they're compensated. You know, we already ruled out commission based, right? You should not work with a commission based advisor, period, end of story. You know, two other options are the AUM model, an advisor who is paid as a percentage of assets. And that's not a bad arrangement, but one that we like better and one that we have adopted. The Lawyer Millionaire Founders network is a flat fee approach, right? So that way I'm not skewed in my general advice about your financial situation and your financial planning by the potential for you to invest money with me and then for me to be paid more.
Darren Wurz [00:14:57]:
An advisor who's paid a percentage of assets isn't, you know, is going to be hesitant to say, yeah, take that money, invest that in your business because there's going to be something in them that wants them to tell you, no, keep that money invested. Bring that money over to our custodian, you know, because they're going to get paid more. So our preference really is a flat fee arrangement. Another great arrangement is an hourly based financial planner who is going to keep track of their time and bill you hourly. That way you know that you are paying them for advice and advice alone and that their advice is not compromised by anything. The third thing you want to look for is credentials and experience. There are, okay, there are so many letters after people's names out there, it's getting ridiculous. Okay, many of them are useless.
Darren Wurz [00:15:52]:
I hate to say it to you folks, but many of them are, you know, Alphabet soup that someone got just because they went and took a quiz somewhere. The gold standard is the cfp. You need three years of experience. You have to go through a rigorous education program that lasts like two years, and you have to take a really, really super hard test. And the reason I know it's super hard is because I know really, really smart people who have failed. You might also look for people who have advanced degrees in financial planning or business strategy. I happen to have my master's degree in financial planning. And you should look for someone who has experience in dealing with people like you.
Darren Wurz [00:16:30]:
Maybe that's other law firm owners, other business owners, you know, people who fit your situation and what you are looking to do. And last but not least, this might be nitpicking a little bit, but I suggest finding someone who's an independent advisor versus working with a corporate firm. And there's some reasons for that. You know, at a big firm, it can be so easy to just get lost in the shuffle. There's a lot of turnover in the financial industry when you're working with an independent practice. There's generally a lot less turnover. You're working a lot more one on one. You're getting a lot more personalized attention.
Darren Wurz [00:17:06]:
And at the big firms, there's just a lot of inherent conflicts of interest. And, you know, that's been my journey. I had an opportunity, you know, when I was starting out to join a big firm. And, you know, honestly, I just felt like no one wanted to pay me what I was worth. And, you know, everyone doubted me. Everyone told me I needed to go join a big firm like Morgan Stanley or Merrill lynch, and I needed the training. I wasn't gonna. I wasn't gonna last.
Darren Wurz [00:17:32]:
I wasn't gonna survive unless I got the training. Well, you know what I said? Screw that. Worst case scenario is I fall flat on my face and I fail, and I've got to go back to being a teacher. Well, look at where we are today, right? So I don't know how we got on that topic. But anyway, I decided to be an independent advisor. And, you know, I'm so glad I did, because to really put the emphasis on serving my clients and my clients first and foremost and not push some corporate agenda or be beholden to some large company, you know, I was really free to put my clients and their needs first. And I really have my dad to thank for that because he was an independent advisor himself. All right, and finally, before we run, let's look at some red flags to watch out for.
Darren Wurz [00:18:22]:
Okay? These are some red flags, warning signs. Run. If you see these high pressure sales tactics, if an advisor is trying to give you the cold sell, you know, run over complicated strategies that you don't understand. Investing is simple, folks. You can invest at Vanguard and be highly, highly successful. If someone has some very convoluted, complicated market timing strategy that they're trying to explain to you that operates on signals and this, that and the other or some big complicated insurance product that has all these riders and options and benefits and caps and minimums. Oh my God. Puke.
Darren Wurz [00:19:07]:
Puke. Ugh. I just, I'm sorry. I just get so disgusted by the financial products industry. Okay, run away. Hidden fees or vague compensation structures. If someone isn't giving you the four one, one on exactly how they're paid and they can't tell you definitively that they do not receive compensation from the products that they're going to sell you, goodbye. Fourth, cookie cutter plans that don't account for you or your business.
Darren Wurz [00:19:40]:
You know, that's one of the problems with the big firms that often you're just shuffled into a corporate model insurance sales. If someone off the bat tries to sell you an insurance policy or annuity policy, run away. And lastly, lack of clarity or evasiveness when questioned, these are all things that you should look out for. When should you hire a financial advisor? Quick checklist. Here's when you're scaling your firm and your finances are getting more complex, you're not confident in your investment strategy. You want a second opinion on major decisions. You're planning for retirement or succession. You're making good money but not building wealth.
Darren Wurz [00:20:26]:
Anybody there? Does that hit home? Ask yourself, do you have the time and expertise to manage your finances effectively? Are you making emotional decisions that could cost you money? Do you have a clear, cohesive, long term strategy or are you just winging it? Would you benefit from an expert sounding board? Oftentimes that's what we're doing. We're a sounding board for our clients. They know they have a lot of savvy, they have a lot of financial expertise. I have a client who creates derivatives. She works amongst Wall street firms, but she's a client of ours because we are a sounding board for her. Do you want more time to focus on your business and personal life? If you answered yes to a lot of these, it might be time to explore working with an advisor. All right, folks, well, you know, we could be that advisor for you. We have a flat fee approach in the way we work with clients and we have built a very unique system, very unique program that is focused exclusively on on working with law firm owners.
Darren Wurz [00:21:31]:
If you'd like to learn about it, the link to Schedule a call with me is in the show notes and we would love to talk with you. Hiring a financial advisor isn't a sign of weakness. Actually, it's a power move, and the right financial advisor can do wonders for you. My challenge to you is this. Stop asking yourself if you can do it yourself and start asking yourself, what's the smartest use of my time and energy right now? If you're serious about building wealth freedom and taking your law firm to the next level, you need to start thinking like a CEO and CEOs delegate. This episode isn't just about hiring a financial advisor. It's also about becoming intentional with your wealth strategy so you can break free from the grind and live the life that you've envisioned. All right, so I have a financial advisor decision guide for you.
Darren Wurz [00:22:24]:
It's on our website. I'll put the link in the show notes and if you like today's episode, leave us a review. It gives us an opportunity to get in front of more law firm owners and we would certainly appreciate it. And finally, if you haven't joined the book club yet, please do. We're currently reading Shoe Dog by Phil Knight. It's a great read. You get to connect with all of our law firm owners in the community, and we'd certainly love to have you in the group. Well, that's a wrap for this episode of the Lawyer Millionaire podcast.
Darren Wurz [00:22:55]:
I'm your host, Darren Wurz, with wishing you great success. See you next time.