Why Former Self-Directed Investors Are Partnering With Modern Wealth Advisors
Written by
Jaime Catmull
Edited by
Molly Sullivan
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There are many reasons people might want to have complete control over their investments and wealth. For some, it’s a matter of believing that if you want something done right, you do it yourself. Others choose to self-direct their investments because they want to avoid paying fees to brokers and advisors.
There comes a time for many, however, when it’s not worth it anymore. Still, there might be concerns that an advisor with 100 or more clients won’t give your account the attention it needs. Thankfully, modern wealth advisors are adapting to meet the needs of former do-it-yourselfers. Here are a few reasons former self-directed investors might bring in a modern wealth advisor.
Newer Wealth Advisory Models Offer Flexibility
Today’s digital age has democratized investing. With zero-cost trading platforms, anyone can trade stocks, bonds or crypto around the clock. For successful professionals who’ve built significant wealth through smart decisions, this DIY approach is second nature.
Yet even the most capable investors face a paradox: As their wealth grows, so does the complexity — and the stakes. A single overlooked tax strategy or missed opportunity could prove costly. An “old school” wealth advisor might not take the time to look into all the various components of your overall wealth. The individual pieces of your investments are something somewhat manageable to oversee on your own, so why would you pass off that responsibility?
Taking a different, more comprehensive and flexible, approach is where modern wealth management firms like Glassman Wealth Services are rewriting the rules of engagement.
“We’re seeing a shift in how sophisticated investors work with advisors,” explained Eric Dunner, Glassman Wealth Services partner. “They don’t want to surrender control — they want a collaborative partner who enhances their financial strategy while respecting their desire to stay involved.”
Unlike traditional firms that insist on managing every dollar, Glassman Wealth offers flexibility. About half their new clients in 2024 opted for transparent flat-fee arrangements rather than traditional percentage-based fees.
Many continue to self-manage portions of their portfolios while leveraging a firm’s expertise for specific needs. For successful self-directed investors, it’s not about surrendering control, it’s about gaining a sophisticated partner who amplifies their capabilities while respecting their autonomy.
Gaining Time, Losing Stress
No matter how adept you are at finance and investing, wealth management is time consuming. And as a person’s wealth increases and diversifies over the years, the time it takes to manage those funds and assets increases as well.
Americans today value their time more than previous generations. People are prioritizing hobbies, travel and time with family; interestingly enough, that viewpoint has only increased after the COVID-19 pandemic.
Therefore, it’s not uncommon for people who have self-directed their wealth for years to seek a wealth advisor. They might be nearing retirement and want to ease some of the stress and responsibility of self-management. Alternatively, someone might have had overworked and absent parents in their youth and wants to avoid that trap with their own children. The trick is finding a firm or individual advisor that allows them to feel comfortable relinquishing some of that control and reclaiming their time.
Wealth advisory firms are realizing that the cut and paste method of running hundreds of clients through the same basic programs isn’t going to lure do-it-yourselfers. After all, fintech and AI have made those very processes and algorithms accessible to anyone who wants to manage their own finances.
People who have competently run their wealth for long periods of time are looking for something more. They essentially want their advisors to know the ins and outs of their risk tolerances and lifestyle priorities; that way, those considerations can be combined with the advisor’s industry expertise to create a bespoke wealth plan.
Glassman Wealth Services purposefully lowered the average client load per advisor to 35 in order to accomplish this. It enables its advisors to devote the necessary time and human oversight to inspire stronger confidence from its clients. And if a client is confident their advisor is servicing their finances with the same care as they would, they are more likely to relinquish day-to-day control and oversight.
When Is It Time To Let Go?
So when is doing everything yourself not worth it anymore? Maybe you find yourself feeling stressed about decisions that could cause your wealth to plummet or throw you into noncompliance. Maybe your investments and finances have gotten complicated enough that you know you’re out of your depth. Or, at the end of the day, maybe you just don’t want to spend the time overseeing everything when you could be doing other things. Tax planning alone requires expertise and constant research, as those rules and regulations change from year to year.
With modern wealth advisors, bringing in help doesn’t have to be a one-size-fits-all endeavor. You can pass off as little or as much responsibility as you want and be more than a faceless number in an overworked advisor’s client load.
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