You should consider hiring a financial advisor when facing major life events, such as marriage, divorce, inheritance, or retirement. It also makes sense when your finances become more complex due to higher income, tax planning, business sales, or multiple income sources. Many people seek an advisor when they lack the time or motivation to manage investments on their own, or when they need accountability to stay consistent with a plan.

Here are the key indicators that you should hire a financial advisor -

• You Are Unsure If You Are Saving Enough

One of the earliest signs is uncertainty.

If you cannot confidently answer how much you need for retirement, how long your savings will last, or whether your current strategy is on track, it may be time to bring in an expert.

A financial advisor helps turn assumptions into numbers and clarity. They assess your income, savings, expected retirement age, inflation impact, and future expenses to build a realistic roadmap.

Guesswork works early. Precision matters later.

• When Your Income or Assets Increase Significantly

A higher income brings opportunity but also complexity.

Bonuses, business income, stock options, rental income, or multiple investment accounts require smarter coordination. Without proper planning, higher earnings can lead to higher taxes and inefficient investing.

Hiring a financial advisor at this stage ensures your money works together instead of sitting in disconnected accounts. This is often one of the smartest moments to seek guidance.

• When Retirement Is 10 to 15 Years Away

This is one of the most critical windows.

At this stage, you still have time to correct course, rebalance investments, and make strategic decisions without panic. Waiting until five years before retirement limits flexibility and increases pressure.

A financial advisor helps adjust risk levels, optimize contributions, and align investments with a realistic retirement timeline. This phase is less about growth at any cost and more about smart positioning.

• When You Do Not Understand Tax Impact on Retirement Income

Taxes do not stop at retirement. In many cases, they increase.

Withdrawals from retirement accounts, investment income, pensions, and required distributions can trigger unexpected tax bills. Without planning, retirees often lose more to taxes than necessary.

If you are unsure how taxes will affect your retirement income, it is a strong signal that you should hire a financial advisor. Proper tax-aware planning can preserve more income over decades.

• When You Have Multiple Retirement Accounts

Many people change jobs, move funds, or open different retirement accounts over time. Eventually, they lose track of how everything fits together.

Multiple accounts without coordination often lead to overlapping investments, inconsistent risk exposure, and inefficiency.

A financial advisor helps consolidate strategy without necessarily consolidating accounts. The goal is alignment, not complexity.

• When You Are Making Emotional Financial Decisions

Fear and greed are powerful forces.

Market volatility, economic uncertainty, or personal life changes often push people to make rushed decisions. Selling at the wrong time or chasing trends late can derail years of planning.

A financial advisor provides perspective, discipline, and long-term focus. Sometimes the biggest value is not what they suggest but what they help you avoid.

• You Are Nearing Retirement and Unsure About Income Strategy

Saving money is one challenge. Turning it into a reliable income is another.

Questions like how much to withdraw, which accounts to use first, and how to balance income with longevity risk become critical.

This is one of the clearest answers to when to hire a financial advisor. Retirement income planning is complex, and mistakes here directly affect lifestyle and security.

• When Life Events Change Your Financial Direction

Major life changes demand financial reassessment.

Marriage, divorce, inheritance, business sale, health issues, or caregiving responsibilities all impact retirement plans. What worked before may no longer apply.

Hiring a financial advisor during or after these transitions helps rebuild a stable plan based on new realities.

What to look for in an advisor

What a Financial Advisor Actually Does for Retirement Planning

A good financial advisor does more than manage investments.

They help you:

• Define realistic retirement goals
• Create a long-term income strategy
• Manage risk as retirement approaches
• Optimize taxes and withdrawals
• Coordinate savings, benefits, and insurance
• Adjust plans as laws and life change

Their role evolves with you, especially as retirement draws closer.

Is It Ever Too Early to Hire a Financial Advisor?

Not really.

Even early guidance can prevent years of inefficient saving and poor investment habits. However, the value increases significantly as finances become layered and decisions carry long-term consequences.

If your financial life feels manageable but unclear, that uncertainty itself is a signal.

The right guidance reshapes the path ahead

At State Pension Advisors, we work exclusively with state employees and understand the rules, benefits, and retirement systems that shape your future. We build strategies around those realities, not generic plans, so your retirement planning stays accurate, compliant, and aligned.

If you are ready for clarity and a plan built for your life, book a consultation with us and take the next step with confidence.

Final Thoughts

Knowing when to hire a financial advisor is less about reaching a specific age or income level and more about recognizing when financial decisions start carrying long term consequences. As retirement approaches, small choices around saving, taxes, and timing can significantly affect future security. The goal is not to hand over control, but to gain perspective, discipline, and structure. The right guidance helps you make informed decisions earlier, adjust with confidence as life changes, and move into retirement with clarity rather than uncertainty.

FAQs

At what point is it worth having a financial advisor?

It becomes worth having a financial advisor when financial decisions start affecting long-term outcomes, not just monthly budgeting. This usually happens when you are building wealth, planning for retirement, managing taxes, or making decisions you cannot easily reverse. If a mistake today could cost you years later, professional guidance is worth it.

‍When should I consider hiring a financial advisor?

You should consider hiring a financial advisor when your financial life feels complex, unclear, or stressful. Common moments include major life changes like marriage, children, career shifts, inheritance, or retirement planning. It is also the right time when you want a clear plan but lack the time, confidence, or structure to manage everything consistently on your own.

At what income should you hire a financial advisor?

There is no fixed income level that determines when you need a financial advisor. The decision depends more on complexity than income. Many people benefit from an advisor once they have steady surplus income, multiple savings or investment accounts, tax concerns, or long-term goals like retirement. Even moderate incomes can benefit if decisions involve planning and coordination.

What is the 80/20 rule for financial advisors?

The 80/20 rule means that roughly 80 percent of your financial results come from 20 percent of the decisions you make. For financial advisors, this focuses attention on the most impactful areas such as savings rate, investment allocation, tax strategy, and retirement timing. The goal is to optimize the decisions that matter most instead of overreacting to short-term market noise.

‍

Content Reference

https://www.tiaa.org/public/invest/services/wealth-management/perspectives/needanadvisor

https://www.investopedia.com/managing-wealth/when-should-you-hire-financial-advisor/

‍