5 Signs It May Be Time to Work with a Financial Advisor
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Estimated Reading Time: 8-9 minutes
Retirement planning has changed dramatically over the past few decades.
Previous generations often retired with a pension, Social Security benefits, and a relatively straightforward financial picture. Today, many Americans are responsible for building their own retirement savings, managing investment portfolios, making tax-efficient withdrawal decisions, planning for healthcare costs, and creating an income strategy that could last 20 to 30 years or more.
At the same time, financial decisions have become increasingly interconnected. One choice, such as when to claim Social Security or how much to withdraw from retirement accounts, may affect taxes, Medicare premiums, investment performance, and even the amount you ultimately leave to your family.
As retirement approaches, many people discover that managing their finances is no longer simply about growing their investments. It’s about coordinating every aspect of their financial life.
So how do you know when it’s time to seek professional guidance?
While everyone’s situation is different, there are several common signs that it may be worth having a conversation with a financial advisor.
1. You're Within Five to Ten Years of Retirement
One of the biggest mistakes people make is waiting until they’re ready to hand in their retirement notice before creating a retirement plan.
The final five to ten years before retirement are often the most important planning years because many financial decisions become more time-sensitive.
During this period, you may be asking questions such as:
- Will I have enough to retire comfortably?
- Should I continue working another year or two?
- When should I begin Social Security benefits?
- Should I consider Roth conversions before Required Minimum Distributions begin?
- Is my investment allocation still appropriate?
- Have I prepared for healthcare expenses before and after Medicare eligibility?
These decisions don’t happen independently.
Changing one part of your financial plan can affect several others. Delaying Social Security, for example, may influence your withdrawal strategy. Roth conversions may reduce future Required Minimum Distributions but increase taxable income in the short term. Retiring earlier than expected may affect healthcare coverage before Medicare begins.
Having time to evaluate these decisions before retirement provides greater flexibility than trying to solve them after retirement has already begun.
Rather than reacting to deadlines, proactive planning allows you to explore different scenarios and determine which approach best supports your long-term goals.
2. You're Worried About Running Out of Money
Ask almost any pre-retiree about their biggest financial concern, and one answer consistently rises to the top:
“Will my money last?”
It’s a reasonable concern.
People are living longer than previous generations, meaning retirement savings may need to support several decades of spending.
At the same time, headlines frequently promote a new “retirement number,” suggesting everyone needs a certain dollar amount before they can retire.
While these figures can be interesting, they rarely tell the complete story.
The amount someone needs depends on many factors, including:
- Retirement lifestyle
- Expected spending habits
- Social Security benefits
- Pension income, if applicable
- Healthcare expenses
- Inflation
- Taxes
- Longevity
- Investment returns
Someone with $1 million may comfortably retire, while another person with twice that amount may still struggle if spending significantly exceeds available income.
Instead of asking, “Do I have enough?”, a more helpful question is:
“Can my resources reasonably support the retirement lifestyle I want?”
Answering that question often requires looking beyond investment balances alone. A retirement income strategy considers where income will come from, how withdrawals may affect taxes, and how your plan could respond to different market environments over time.
Having a clear understanding of your financial trajectory may provide greater confidence than relying on generalized retirement benchmarks.
3. Your Financial Life Has Become More Complex Than You Want to Manage
Saving for retirement and planning for retirement are no longer the same thing.
Many individuals accumulate retirement accounts over decades of employment. By retirement, they may have a combination of:
- 401(k)s
- Traditional IRAs
- Roth IRAs
- Brokerage accounts
- Employer stock
- Health Savings Accounts (HSAs)
- Pension decisions
- Social Security choices
Each account may have different tax rules, withdrawal requirements, and planning opportunities.
Then come additional considerations like:
- Required Minimum Distributions (RMDs)
- Medicare enrollment
- Tax-efficient withdrawal sequencing
- Beneficiary reviews
- Estate planning coordination
- Charitable giving strategies
- Long-term care considerations
For many people, the issue isn’t a lack of financial knowledge.
It’s simply that retirement planning becomes another full-time job.
Many individuals would rather spend retirement traveling, volunteering, enjoying hobbies, spending time with grandchildren, or pursuing new interests than constantly monitoring tax laws and financial regulations.
If managing every aspect of your financial plan has become more stressful than rewarding, it may be time to seek additional guidance.
If you’re married, there’s another important consideration.
Often, one spouse manages the majority of household finances while the other has limited involvement. Should something unexpectedly happen to the spouse overseeing the finances, the surviving spouse may suddenly inherit responsibilities they never anticipated.
Working together with a financial advisor before those situations arise can help both spouses become more familiar with the family’s overall financial picture.
4. You're Experiencing a Major Life Change
Life rarely unfolds exactly as planned.
Major life events often create financial decisions that extend well beyond the event itself.
Examples include:
- Retirement
- Job loss
- Divorce
- The death of a spouse
- Receiving an inheritance
- Selling a business
- Becoming a caregiver
- Helping aging parents
- Supporting adult children financially
These transitions frequently affect multiple areas of your financial life at once.
For example, losing a spouse may involve updating estate documents, changing income sources, adjusting investment strategies, revisiting tax filing status, and making new healthcare decisions.
Similarly, selling a business or receiving a large inheritance may introduce tax considerations that require thoughtful planning before year-end.
During emotionally challenging periods, it’s often difficult to separate immediate decisions from long-term consequences.
Having a coordinated financial plan can provide structure during uncertain times and help ensure important decisions are considered within the context of your broader financial goals.
5. You Want a Long-Term Plan Instead of Guesswork
Many people spend decades accumulating retirement savings.
Far fewer spend the same amount of time creating a strategy for using those savings.
Retirement isn’t simply about reaching a number.
It’s about making informed decisions year after year.
Questions may include:
- Which accounts should I withdraw from first?
- How much can I safely spend each year?
- How should my investments change throughout retirement?
- When should I review my estate plan?
- How can I help manage taxes over time?
- What happens if markets decline early in retirement?
- How should charitable giving fit into my overall plan?
A comprehensive retirement strategy isn’t a document that gets filed away once retirement begins.
It’s an ongoing process.
As tax laws change, markets fluctuate, healthcare needs evolve, and personal priorities shift, your financial strategy may need periodic adjustments as well.
Regular reviews help ensure your financial decisions continue supporting your goals throughout retirement.
What Should You Look for in a Financial Advisor?
Not every financial advisor offers the same services or planning approach.
As you evaluate your options, consider asking questions such as:
- Do they take time to understand my goals before making recommendations?
- Do they provide comprehensive retirement planning or primarily investment management?
- Will they discuss taxes, retirement income, healthcare, and estate planning as part of the overall strategy?
- How often will my financial plan be reviewed?
- Do they explain recommendations in a way I understand?
- Will they coordinate with my CPA or estate planning attorney when appropriate?
The right relationship should help you feel informed, supported, and confident in the decisions you’re making—not overwhelmed by complexity.
Retirement Planning Is About More Than Investments
Many people associate working with a financial advisor solely with investment management.
While investments remain an important part of retirement planning, they’re only one piece of a much larger picture.
A comprehensive retirement strategy often includes coordinating:
- 1. Income Planning
- 2. Investment Planning
- 3. Tax Planning
- 4. Healthcare Planning
- 5. Legacy Planning
When these areas work together, financial decisions can become more intentional and aligned with your long-term goals.
Rather than focusing on one isolated issue, a coordinated approach considers how each financial decision may influence the others over time.
The Bottom Line
There isn’t a specific age, income level, or account balance that determines when someone should begin working with a financial advisor.
For many people, the right time comes when financial decisions become more complex, retirement begins to feel real, or they simply want greater confidence in the path they’re taking.
Whether you’re five years from retirement, navigating a significant life transition, or looking for clarity around your long-term financial future, seeking guidance earlier often provides more opportunities than waiting until important decisions become urgent.
At Goldstone Financial Group, we believe retirement planning extends beyond investments alone. Our comprehensive approach considers Income Planning, Investment Planning, Tax Planning, Healthcare Planning, and Legacy Planning to help individuals and families make informed financial decisions throughout retirement.
If you’re wondering whether your current financial strategy aligns with your long-term goals, now may be an appropriate time to review your plan and explore the opportunities available to you.
Frequently Asked Questions
When should I hire a financial advisor?
Many individuals begin working with a financial advisor within five to ten years of retirement, when decisions regarding income planning, taxes, Social Security, healthcare, and investment strategy become increasingly important. However, the right time depends on your individual circumstances and financial goals.
Is it too early to work with a financial advisor if I’m not retired yet?
Not necessarily. Planning before retirement often provides more flexibility than waiting until after retirement begins. Starting early may allow additional time to evaluate retirement income strategies, tax planning opportunities, and investment allocation.
Do financial advisors help with more than investments?
Many advisory firms offer guidance beyond investment management, including retirement income planning, tax planning strategies, healthcare planning considerations, estate planning coordination, and long-term financial planning.
Sources:
- U.S. Securities and Exchange Commission, Investor.gov – Working with an Investment Professional.
- FINRA Investor Education Foundation, Financial Planning Resources.
- Social Security Administration, Retirement Benefits.
- Johnson Brunetti, Money Wisdom Podcast: “5 Signs It’s Time to See a Financial Advisor”
Disclosure:
Goldstone Financial Group, LLC (“GFG”) is a registered investment advisor with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or qualification. This material is provided for informational purposes only. Opinions expressed herein are solely those of GFG. None of the information presented in this material is intended to offer personalized investment advice and does not constitute an offer to sell or solicit any offer to buy a security or any insurance product and is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.