In today’s complex financial landscape, understanding when to meet with a financial advisor is crucial for achieving your long-term goals. We often hear this question, and the answer can vary based on individual circumstances. Jake Doser, CFP®, CPWA® joins the Money Wisdom Question Series to share his insights.

Life Stages and Financial Planning

One approach to determine the right time to consult a financial advisor is to consider your stage of life. Ideally, you should be engaging with a financial advisor at least 5 to 10 years before retirement. This period, often referred to as the “retirement Red Zone,” is critical for making necessary adjustments to ensure a smooth transition into retirement. Before this, meeting with an advisor can still provide significant value, helping you grow your wealth and prepare for the future.

In retirement, your financial goals shift from accumulation to preservation. The aim is not just growth but also protecting your assets to ensure they last throughout retirement. Withdrawing from a declining portfolio can be risky, akin to catching a falling knife. Therefore, consulting a financial advisor well before retirement helps mitigate these risks.

Adapting to Life Changes

Another key time to meet with an advisor is during significant life changes. These could be financial, like receiving a raise, bonus, inheritance, or stock options, which necessitate a reassessment of your portfolio. It’s essential to align new assets with your financial strategy and address any debt or shifting priorities.

Even non-financial events, such as losing a loved one or facing a health challenge, can impact your financial priorities. These moments may prompt a reassessment of your investment strategy to better align with your current life goals.

When Not to Meet with an Advisor

While regular check-ins with your advisor are beneficial, meeting too frequently without a significant reason, driven by market fears or short-term fluctuations, may not be productive. If such meetings are driven by panic rather than planning, it might indicate a lack of understanding or confidence in your financial plan. Investing is a long-term endeavor, and reacting to short-term market changes is often a losing strategy.

Instead, use these moments to reinforce your confidence in your plan and to ensure it can weather the ups and downs of the market.

Conclusion

Meeting with a financial advisor should be driven by life stages, significant financial changes, and shifts in personal priorities—not by short-term market movements. At Johnson Brunetti, we are here to help you navigate these key moments, providing the guidance and confidence you need to achieve your financial goals.