When Should You Start Working with an Advisor?
Many of the individuals and families we serve are in their prime earning years—in their 30s, 40s, and 50s—focused on advancing their careers, supporting their families, and steadily building wealth. Retirement still feels distant… but that doesn’t mean their financial lives are simple. In fact, for many, their financial complexity is increasing before retirement is even a part of the conversation.
We often hear people ask if they should wait to form a relationship with an advisor until they’re closer to retirement. And, while the answer to that question is different for everyone, there are many cases where waiting can limit both flexibility and opportunity and allow stress to increase alongside complexity.
When it makes sense to seek advice mid-career.
It is not unusual for successful professionals to manage their finances independently for years. They save consistently, invest prudently, and make thoughtful decisions. Over time, however, circumstances evolve.
Often, complexity increases due to:
- New forms of compensation, such as equity awards, stock options, or deferred compensation plans
- An inheritance or liquidity event
- Multiple investment accounts accumulated across employers
- Growing family and lifestyle demands
What once felt manageable can begin to feel fragmented. Coordinating investment strategy, tax planning, retirement planning, and estate considerations becomes more difficult—particularly while balancing a demanding career and personal responsibilities.
At that stage, we find that many individuals recognize the value of a coordinated plan and professional guidance which allows them to streamline their financial lives and focus on what really matters to them.
The risk of waiting for retirement to work with an advisor.
Another reason many professionals seek advice earlier in life is that retirement readiness is not determined solely by age. It is the result of sustained planning, disciplined saving, tax efficiency, and strategic decision-making over time. Waiting until retirement is imminent reduces the ability for us to course-correct if adjustments are needed or circumstances suddenly change.
If projections reveal a shortfall, options may be limited. Extending one’s career, modifying lifestyle expectations, or significantly increasing savings late in the process can be difficult and emotionally stressful. Once a retirement decision has been made, reversing it is often impractical.
The advantage of a long-term plan.
Engaging an advisor prior to retirement allows for intentional, long-term strategy development. Time enables:
- Investment decisions to compound over decades
- Tax strategies to be implemented proactively
- Equity compensation to be exercised and diversified strategically
- Retirement income plans to be stress-tested and refined
- Major financial decisions to be aligned with long-term goals
Starting earlier and creating a comprehensive plan provides flexibility—and increased confidence that you’ll be able to meet your goal for retirement and subsequently live the life you want once retired.
A proactive approach.
Nearing retirement is only one of many indicators that it may be time to engage an advisor. Increased complexity, more demands on your time, and career and compensation changes could all be indicators that it may be time to seek guidance.
The Truepoint approach allows us to begin by understanding more about your situation and how we may be able to help. We can then match you with the services you need at the phase of life you’re in now—with the opportunity to expand those services as your circumstances change over time.
If you’re considering whether a relationship with an advisor is the right decision for you now, we’d be happy to talk through your unique situation and if we may be able to help.
