When should I talk to a financial advisor?

This question comes up all the time in conversations, especially with young professionals.

When should I talk to a financial advisory?
How much money should I have if I want to start investing?
When should I work with a financial advisor?

It’s a hard question to answer, because investing is not one-size-fits-all and is inherently risky. One way to think about this that is more nuanced is with some personal questions and considerations that could be good to discuss with a financial advisor.

Consideration – I have my budget and an emergency fund in place. What do I do with any extra money? Invest, or pay down debt?

If you’ve already handled the basics of financial health and you have extra income, investing may be an option to explore. A financial professional can help you understand the pros and cons, and importantly, discuss the risks of investing in different instruments.

Consideration – I’ve had a change in my financial life and I’m wondering what this means for me.

Perhaps you’re making money for the first time, or got a raise, or received an inheritance. Maybe you got engaged or had a child. A trusted financial advisor can help explain changes, things to think about, and opportunities that a financial change can bring about.

Consideration – I have a retirement plan available to me via my workplace OR I don’t have a retirement plan available to me via my work. What should I do?

Whether you do or do not have a retirement plan offered to you at work, if you have enough cash flow to fund your expenses and still save, you may benefit from talking to a financial advisor about longer-term options like retirement planning. An advisor could help guide your investment selections in a 401(k), for example, or help set up a solo plan or SEP IRA if you have the means to save into it.

Consideration – I want more return on my money, and I’m willing to learn about risk.

Investing inherently is about balancing the monetary return to the client with the risk that the client is willing to bear. This is essential to investing and it is important to discuss with your financial advisor the risk that your investments are taking on. Need to understand more about risk and investing? That is absolutely a conversation to have with a financial advisor.

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If this question resonates with you, take a moment to reflect on where you are today. The answer may be less about investing and more about understanding what you're investing for.