There’s no age, income or life stage that dictates when to hire a financial advisor. But it’s common to seek out financial advice when your circumstances change dramatically or your financial life becomes more complex. Below are seven ways to tell it may be time to hire a financial advisor.
1. You’re experiencing major life changes
Major life changes can have a huge impact on your finances. For example:
- Getting married or divorced, having a baby or becoming an empty nester may unearth new goals or require you to change how you approach your money.
- Caring for aging parents or a family member with functional needs or a serious illness may involve special expenses.
- Receiving a significant inheritance or windfall could require you to make a series of complicated decisions.
If you’ve gone through one or more major life changes recently, or if you see them coming in the next few years, it could be the right time to talk to a financial advisor. A financial advisor could help you plan for new costs or changes in income, navigate a new set of risks and help you adjust your financial plan based on new circumstances.
» Ready for the next step? See our guide to choosing a financial advisor
2. You have no specific financial goals
You might feel aimless or anxious about your finances because you don’t have clear goals around building wealth or using your money to create the life you want. Financial advisors typically start there, helping clients set financial goals and make a plan for reaching them over the course of a year or a decade or even longer.
3. Your professional life is getting more high-stakes
As you work your way up the income ladder, you may reach a point when your previous strategy feels too simple. For example, when you’re dealing with a more complicated compensation package or a growing business, your tax planning, investment planning and/or estate planning needs naturally become more complex. You may benefit from working with a financial advisor who can help you and your plan adjust to that complexity.
4. You’ve dealt with unexpected tax bills
Inadequate tax planning can have real consequences. A financial advisor may help you by implementing tax strategies across your accounts to minimize taxes where possible and help you prepare when you’ll face a bill.
5. You have no time or interest in financial planning
Not everyone can or wants to spend their time working on their finances. But neglect could lead to making errors or allowing your finances to become chaotic and unorganized. Outsourcing critical components to an advisor could help you stay on top of important tasks with little effort.
» Learn more: How much do financial advisors cost?
6. You want a second opinion on your finances
Even if you have a good handle on your finances, you may second-guess big decisions or want reassurance that you’re on track with your goals. This is also common if you and your partner disagree about your approach or you find discussing money very stressful. A financial advisor often acts as a neutral outside perspective, helping you improve your strategy, balance competing goals and feel confident you’re doing the right things with your resources.
7. You want to leave your heirs an inheritance
When you’ve accumulated enough assets to consider leaving your heirs an inheritance, there can be a mess of paperwork, family dynamics or planning to wade through. A financial advisor may be well-equipped to walk you through the estate planning process. And depending on the level of services they provide, it’s possible they could do some of the heavy lifting.
Still not sure if it’s time? Take the quiz
Our quick quiz asks questions in five areas to evaluate whether a financial advisor might be a good idea for you. The maximum score is 50 points; if you score 20 or more, it’s probably time.
» Score more than 20 points? See our picks for the year’s best financial advisors
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