Do I need a wealth adviser?
Journal ·
It depends on what you need help with.
An adviser is worth paying for when a decision is complex, high-stakes or legally requires advice. For much of the rest, investors who like to stay in charge can do it themselves, with the right tools.
This page explains what an adviser does, what it costs, and how to tell which side of the line you are on. Arctic does not give financial advice.
What a wealth adviser does
A good adviser does six things, usually reviewed once a year.
- Gets to know you: your income, spending, family, goals and how much risk you can take.
- Brings everything into one picture: every account, pension and property.
- Sets a plan: what each pot is for, and by when.
- Recommends what to hold, and in which wrapper (ISA, pension, general account) for tax.
- Reviews it: rebalancing, fees, and whether you are still on track.
- Keeps you steady when markets fall, so you don’t sell at the wrong time.
What an adviser costs
Ongoing advice typically costs around 0.5% to 1% a year of what you hold, on top of platform and fund fees. Many advisers also charge for the first plan, as a percentage or a fixed fee.
Small percentages compound. An illustration, not a forecast:
| £250,000 invested for 20 years | Value after 20 years |
|---|---|
| Growing 5% a year | £663,000 |
| The same, less a 1% yearly fee | £548,000 |
| Cost of the fee | £115,000 (17%) |
Illustrative only. Investments can fall as well as rise, and returns are not guaranteed.
When an adviser is worth paying for
Advice earns its fee when a decision is hard to undo or the rules are complex. For example:
- Transferring out of a defined benefit (final salary) pension: if it is worth over £30,000, the law requires advice first.
- Turning a pension into an income: drawdown, an annuity, or both.
- Inheritance tax, trusts and passing wealth on.
- Selling a business, a divorce, or a large windfall.
- When you would rather not manage it yourself at all.
Free, impartial guidance is a good first step: MoneyHelper, and Pension Wise if you are 50 or over.
What you can do yourself
Much of an adviser’s yearly work is seeing clearly and staying disciplined. Self-directed investors can do it if they can see everything in one place:
- Know what you own across every account, and what your funds hold underneath.
- Give each pot a purpose and a date, and check it is on track.
- Know the risk you are taking: how concentrated you are, and how far you could fall.
- Use your allowances: ISA and pension tax relief.
- Keep costs low, and review once a year, not every day.
Where Arctic fits
Arctic gives you the tools for the do-it-yourself part, in five steps:
- See everything in one placeEvery broker, account and pension in one figureHoldings Snapshot
- Plan your goalsA target, a date and a plan for each potInvest Horizons
- Understand your riskWhat your funds really hold, company by companyPortfolio Sonar
- Plan your lifeWhat you earn, save and spend, now and aheadEconomic Wealth
- Review calmlyYour assistant portfolio manager: what moved, and why, 24/7Orca
Arctic is read-only and never moves your money. It gives you the analysis, never a recommendation: every decision stays yours. Join the waitlist.