Some financial advisors charge a 1% annual fee on your portfolio, while others charge $200 to $400 hourly fees. They are worth it if you have the following three needs.

Develop a Financial Plan To Meet Your Goals

If you have financial goals, such as saving enough for retirement, that you're unsure how to reach, it may be time to hire a financial advisor. They can assess your financial situation, including your income, expenses, assets, and debts, and develop a customized financial plan that helps you reach your goals. Your plan may include specific actions such as reducing entertainment expenses or rebalancing your investment portfolio.

Create a Tax Planning Strategy

If all you need is to prepare a routine tax filing, you probably don't need a financial advisor. However, if you have complex tax issues or want a tax planning strategy, an advisor could be just what you need. You might be looking for ways to minimize your estate tax or offset your capital gains tax. An advisor could save you lots of headaches and money in such situations.

Deal With Significant Life Events

Sometimes you have to deal with significant life events that have financial ramifications. Examples include:

• You had a divorce and need help adjusting financially to the single life.
• Your spouse was diagnosed with a major illness, and you're struggling with the medical costs.
• You just inherited money from a parent and need investment advice.

In these cases, a financial advisor can help you better handle the challenges.