SpaceX IPO allocation sparks adviser debate after investor gets full slice

A SpaceX IPO allocation has become the latest exhibit in the old fight over whether a financial adviser is worth the fee, after a CPA told MarketWatch that his adviser landed him the full amount he requested in a heavily sought-after offering.

The reader, writing to Quentin Fottrell’s MarketWatch advice column The Moneyist, said he has spent more than 40 years as a CPA and tax adviser working with wealthy people, estate plans, taxes and investment managers. He said he could manage his own money, but still hires a financial adviser, just as he hires another CPA to prepare his tax return.

His argument was plain: being able to do a job yourself does not automatically make it the best use of your time. He said wealthy families he has worked with often use investment managers, advisers or family-office professionals, despite being sophisticated and financially successful.

Was a full SpaceX IPO allocation lucky?

The CPA said many investors were talking about the recent SpaceX offering and that such deals are often oversubscribed. He told MarketWatch that, based on reports he saw, many investors received only a small share of what they asked for, while others may have received nothing.

His adviser, he said, had access to the opportunity and secured him the full allocation. The reader said that one win did not prove everyone should hire an adviser, but it showed that advisers may provide value beyond picking investments.

An IPO allocation is the amount of stock an investor is allowed to buy in an initial public offering or similar offering. When demand is stronger than the available supply, investors can receive fewer shares than they requested.

Fottrell’s response was more cautious. He wrote that the investor could have bought SpaceX stock later at nearly a 50% discount from its post-IPO high of $225.64, though the reader had wanted access early and was now invested.

Fottrell also cited comments to Reuters from Mark Hackett, chief market strategist for Nationwide, who said of SpaceX: “There’s nervousness about expectations being too high. I expect that to continue until we get some earnings out.”

What does it say about hiring a financial adviser?

Fottrell agreed with the broader point that outside expertise can help, especially as wealth and taxes get more complicated. He wrote that investors often need a view from outside their own financial situation, whether they are dealing with investments, tax strategy, estate planning or retirement income.

MarketWatch also cited a 2025 Northwestern Mutual study that found three-quarters of American millionaires have an adviser, more than twice the rate for the average American. The study also found that millionaires trust financial advisers more than any other source of financial advice.

The same study said only 36% of millionaires with at least $1 million in investable assets consider themselves wealthy. Northwestern Mutual said America has 23.8 million millionaires, and that they describe themselves as more financially disciplined, confident, optimistic and clear about their finances than the average American.

Fottrell drew a line between simpler households and more complex ones. A W-2 worker with a 401(k), a home, emergency savings, college savings accounts, an IRA or a pension may have less need for an adviser, he wrote.

For wealthier investors, he said, estate planning, tax planning and income planning can become harder to coordinate. He pointed to a previous reader who made $300,000 through options trading with an adviser, then faced tax concerns and possible Medicare Income-Related Monthly Adjustment Amount surcharges because those charges are based on modified adjusted gross income from two years earlier.

Fottrell’s bottom line was measured: delegating can make sense, but investors should do it carefully and make sure their experts, including advisers, CPAs and estate lawyers, are working together.

This story draws on original reporting from MarketWatch.