As a young person it wasn't my impression that single people in their 20's would qualify as needing an advisor. So, one of my first questions was, "what's the right age to start using a financial advisor"?
It's funny to look back on my younger self posing this question since I wouldn't have hesitated to hire a plumber, car mechanic or attorney to handle specialty work and advising.
Maybe financial topics rated differently because I somehow felt qualified to do my own taxes (using a boxed program)? Granted my taxes back then consisted of a W-2 and some donation receipts. After all, I had a business degree from a major university. The truth is, I had no business trying to do my taxes or assess my long-term strategic finances alone, anymore that I needed to be changing the carburetor in my car.
Once I started seeing the day-to-day possibilities that stem from early stage planning, it made sense to seek the counsel of a financial advisor. I quickly learned that the younger you are when you apply for life insurance, typically the better the pricing you get because most people don't get healthier as they get older. Additionally, saving for retirement and an emergency fund are easier if you never get used to having access to your entire income stream.
With the societal tendency to rely on credit cards for purchases we feel entitled to, even if we can't afford them, it makes sense to get used to balanced savings and spending from the get-go. Besides, it helps to have professional unbiased advice when making large purchases like homes, cars and vacation housing (like time-shares).
As a young person, I thought of financial advisors as the people who deal with buying and selling stocks. In reality, it is much more than that and (it should be) so much more comprehensive. These are people who should be able to set you up with adequate types (and amounts) of life insurance, long-term care and disability insurance; 529 planning for college, advise on 401k investing, roll-over and strategically plan monies from old jobs into IRA's; advise on tax savings strategies, help create emergency reserve funds, provide full financial plans, work with an attorney to set up Estate planning, as well as work with investments and money markets.
Whew! No matter what age you are, finding a quality person to advise you on matters of financial responsibility is important and the sooner, the better! If you are looking for someone to fill this role for you, please contact us for a complementary consultation.