The Role of Financial Advisors: When and Why to Seek Professional Help
Many people wonder: When should I seek financial advice? And just as importantly, why?
While this article could be seen as self-serving, the questions are serious ones—for a few key reasons.
When Should You Seek Financial Advice?
The short answer? As soon as you start working and saving toward a goal.
Whether you're saving for a new home, retirement, a car, or other major life milestones, investing is often the best way to grow your wealth. Additionally, if you receive an inheritance or major windfall, or if you’re starting a family, financial planning becomes even more critical.
One often-overlooked aspect of financial planning at this stage is life insurance. Many people don’t realize that life insurance isn’t just about protecting your loved ones—it can also be a wealth accumulation and estate planning tool.
Even if you think you’re too young—or don’t have enough money to need professional guidance—there are times in life when having a trusted financial sounding board can make all the difference. Proactive planning allows you to make informed decisions rather than just reacting to financial challenges, which can limit your options.
The Most Common Financial Gaps
As wealth managers, we frequently see two major gaps in people’s financial planning:
Lack of a structured financial plan
No budget outlining the cost of achieving financial goals
The right time to start planning? Now.
Take the Roth IRA, for example. If a 23-year-old starts investing early with maximum contributions annually, growing their portfolio at a 7% return rate, they could accumulate $1.96 million by age 65.
If they wait until 40 to start investing? Their balance at 65 drops to just $541,000.
The lesson: Start early, even with small contributions, and seek professional advice.
Why Financial Advice Matters
Creating a financial plan is just the first step. Like a garden, it requires constant maintenance. A financial advisor helps keep you on track through life’s financial journey—including milestones like college savings, estate planning, and retirement.
The Proven Impact of Financial Advice
Studies show that professional financial guidance leads to better financial outcomes.
Vanguard’s 2020 White Paper: The Value of Advice
Research on over 44,000 self-directed investors who adopted Vanguard Personal Advisor Services found that financial advice:
Improved portfolio construction for nearly 90% of investors
Helped reduce equity risk and increase international diversification
Minimized uninvested cash, leading to better long-term returns
Russell Investments’ 25-Year Study
Over a 25-year period, individuals who worked with financial advisors accumulated, on average, 1.5% more in assets compared to those who did not seek professional guidance.
And this is before even factoring in the benefits of estate planning and tax strategy—where having attorneys and CPAs on your team can make a significant difference.
Final Thoughts
The right time to seek financial advice is now—whether you're just starting your financial journey or already have substantial assets to manage. A financial advisor helps you plan, grow, and protect your wealth, ensuring you're set up for long-term success.
Are you ready to take control of your financial future? Let’s talk.
