Do You Need a Financial Advisor in Canada?

Some people say paying for a financial advisor is a waste of money. Others won’t make a financial move without one. The truth is, whether you need an advisor depends on how complicated your life has become. Not just how much you’ve saved.

How to know when you might need one

You don’t need an advisor just because you have investments. The trigger is complexity. The point where DIY spreadsheets and robo-advisors can’t keep up with your life. You don’t even need to be a relatively high earner to use a financial advisor. With the complexities Canadians face financially, with all the different investment and retirement savings accounts, most of us can actually benefit from a financial advisor.

Now, on to some other signs that you may need to consult with a professional.

Big Life Events

Think about buying a home, getting married, or inheriting money. A sudden inheritance, for example, can leave you juggling family pressure, taxes, and the fear of making a wrong move. Without structure, it’s easy to let emotions take over and watch opportunity slip away.

Dealing With Multiple Accounts

RRSPs, TFSAs, workplace pensions, and maybe even RESP for the kids. There’s a lot of things happening at once. Keeping them straight is one thing; knowing how to coordinate contributions, withdrawals, and taxes across them is another. Only about half of Canadians have a written financial plan, and those who do feel far more confident about their future financial security.

When retirement isn’t clear

Saving for retirement is easy compared to turning savings into income. When should you start CPP or OAS? Which accounts should you draw from first? These are one-time decisions that can mean the difference between stretching your income for decades or running short when you need it most.

Financial advisors who specialize in retirement planning can propel you to a comfortable, and stress-free retirement. With (fast) growing inflation and housing costs, hiring a retirement consultant should be a non-negotiable.

When you’re running a business

Whether you identify as self-employed, sole prop, or professional, you really don’t have the time to sit around and move money from account to account. You need to meet with customers, do inventory, and do the marketing.

If you’re incorporated, you face a different set of rules. Passive investment income above $50,000 inside a corporation starts to reduce access to the small business tax rate. That means decisions about salary vs. dividends, and where to hold investments, suddenly carry tax consequences measured in tens of thousands of dollars.

When discipline slips

It’s one thing to know what to do; it’s another to actually do it. Many DIY investors buy high when markets are strong and sell low when fear sets in. That “behaviour gap” quietly eats away at returns, often costing more than the fees they were trying to avoid in the first place (evidence here).

What a financial advisor really does

The biggest misconception is that advisors exist just to pick investments. In reality, the value comes from planning, structure, and helping you avoid costly mistakes.

Turning savings into income

Imagine a couple entering retirement with $1 million spread across RRSPs, TFSAs, and a non-registered account. Do they take RRSP withdrawals first? Delay CPP? Use the TFSA for last? An advisor runs the numbers, designs a tax-efficient withdrawal strategy, and shows them they can retire on time without fear of outliving their money.

Cutting the tax bill

Taxes are one of the biggest drags on wealth. Smart planning (integrating RRSP contributions, TFSA growth, charitable donations, and even corporate structures) can reduce the bite. Done properly, these strategies can add meaningful long-term value beyond market returns.

Keeping investments on track

Portfolios don’t need to be complicated, but they do need to be managed. Advisors align risk with goals, rebalance when necessary, and coach clients through turbulence. That coaching often prevents panic selling and keeps people invested when it matters most. A bigger factor in long-term returns than finding the “perfect” fund.

Protecting family wealth

Estate planning often gets overlooked until it’s too late. Advisors work alongside lawyers and accountants to make sure wills, beneficiaries, and powers of attorney line up with your financial plan. It’s not about paperwork — it’s about protecting your family from unnecessary stress.

Providing clarity and accountability

Sometimes the real value is having someone in your corner. A professional who explains choices in plain language, checks in regularly, and holds you accountable so you don’t drift. Many Canadians who work with advisors report feeling more optimistic and closer to their goals year after year.

Deciding on Hiring a Financial Advisor

Even if you see the value, hiring the right advisor matters just as much as the decision to get one.

Understand the costs

Most advisors charge anywhere between 1 and 5 % of the assets they manage, often with tiered rates as your portfolio grows. Some charge flat fees or hourly rates. Roughly $3,000 for a full plan or $300 an hour for specific advice is typical in Canada. Commission-based advisors still exist, but the potential conflicts make transparency critical.

Consider independence

Bank-owned firms dominate wealth management, but boutique and independent advisors often appeal to people who want more personal service. Independent firms aren’t tied to selling proprietary products, which can mean more flexibility and customization.

Look at alternatives

The wealth management landscape offers diverse choices. Bank-owned full-service brokerages like Nesbitt Burns provide access to a wide range of investment products and aren't restricted to proprietary offerings. 

Meanwhile, boutique and independent advisors may appeal to those seeking a smaller firm experience. The real difference isn't about who owns the firm, but whether you're working with a full-service brokerage or a retail banking advisor who may have more limited product options. Understanding these distinctions helps you find the right fit for your needs.

Asking Your Financial Advisor the Right Questions

Before you sign anything, ask:

• How are you compensated?
• Do you hold a planning designation?
• What services are included beyond investments?
• How often will we review my plan?

If the answers aren’t clear, walk away.

Bottom line

Do you need a financial advisor in Canada? Maybe. If your life is simple — steady income, one or two accounts, and a long time horizon — you can probably manage with DIY or a robo-advisor. 

But if you’re juggling multiple priorities, nearing retirement, or facing complex tax questions, reach out to the pros at Surcon Mahoney Wealth Management. Our expert team of advisors can provide clarity, structure, and discipline that’s hard to achieve on your own.

The decision isn’t about whether advisors are worth it in general. It’s about whether one is worth it for you. Look at your situation honestly, and if you feel stuck, it may be time to talk to someone who can help map the road ahead.