It’s Never Too Early
“I don’t have enough money yet to justify an advisor.”
This statement came up during a conversation I had recently around the topic of work. The comment wasn’t dismissive; it came from a place of not wanting to waste anyone’s time and is something I hear quite often when speaking with younger people in their 20s and 30s. There is a common misconception that working with a financial advisor is only useful when you have accumulated a substantial amount of assets or are approaching retirement. The reality is that for many people, some of the biggest financial moments happen long before they feel “wealthy,” such as:
• Receiving a big raise or bonus
• Getting married or combining finances
• Buying your first house
• Starting a family
• A family health emergency
Each of these milestones comes with important decisions, and the impact of these decisions has the potential to compound over time. The point isn’t to create urgency or anxiety, but to highlight how small adjustments today can make a meaningful difference further down the road.
In my experience, many young professionals tend to focus primarily on growing their income as much as possible, which is understandable. Your income is important, and you work hard for it; but without a clear plan or long-term strategy in place, your income may not be working as hard for you as it could be. Unexpected events can also expose gaps that income alone can’t cover. Consider asking yourself the following questions:
- Is my mix of taxable, pre-tax, and Roth savings aligned with my current tax situation and long-term goals?
- Does my investment approach align with my time horizon and risk tolerance? Is my portfolio well-diversified or am I unintentionally concentrated?
- Do I have a sufficient emergency fund?
- Do I have adequate life, health, disability, and renters/homeowners insurance?
Working with an advisor can help address these questions and suggest additional strategies and tools that you may not be taking advantage of, depending on your unique goals and circumstances. Often the value doesn’t come from making dramatic changes, but in avoiding costly missteps and building confidence around the decisions you’re already making.
An initial conversation allows us to open that dialogue and determine what kind of relationship makes the most sense based on your specific needs. For example, one way this can be structured is through a retainer-based relationship designed to keep advice accessible, ongoing and cost-effective as life evolves. Think of it less like hiring an advisor for a moment, and more like having one in your corner when important decisions arise or you need advice.
If you are interested in having a discussion on how we can help you anticipate and address current and future financial concerns, please reach out to our financial planning team.
West Financial Services, Inc. (“WFS”) offers investment advisory services and is registered with the U.S. Securities and Exchange Commission (“SEC”). SEC registration does not constitute an endorsement of the firm by the SEC nor does it indicate that the firm has attained a particular level of skill or ability. You should carefully read and review all information provided by WFS, including Form ADV Part 1A, Part 2A brochure and all supplements, and Form CRS.
This information is intended to be educational in nature, and not as a recommendation of any particular strategy, approach, product, security, or concept. These materials are not intended as any form of substitute for individualized investment advice. The discussion is general in nature, and therefore not intended to recommend or endorse any asset class, security, or technical aspect of any security for the purpose of allowing a reader to use the approach on their own. You should not treat these materials as advice in relation to legal, taxation, or investment matters. Before participating in any investment program or making any investment, clients as well as all other readers are encouraged to consult with their own professional advisers, including investment advisers and tax advisers.