Why You Should Start Working with a Financial Advisor in Your 30s

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Entering your 30s marks a significant milestone in your life. By this point, you have likely settled into your career, established some financial stability, and perhaps even started a family. However, amidst the hustle and bustle of life, it is easy to overlook the importance of strategic financial planning. This is where a financial advisor can be invaluable. Getting a financial advisor in your 30s can help you optimize your investments, plan for significant life events, and ensure the money you work so hard to earn works for you.

Financial planning in your 30s can lay the foundation for the rest of your life. This article explores why you should consider starting to work with a financial advisor at this stage in your life.

Why should I get a financial advisor in my 30s?

Here are some reasons why working with a financial advisor in your 30s can turn out to be a prudent strategy:

1. Career stability necessitates long-term financial planning

For many individuals, their 30s represent a phase of life where they finally have the financial bandwidth to take their money matters seriously. This decade typically signifies a significant milestone in your professional journey. The days of scraping by on entry-level salaries are likely behind you. Instead, most people in this age group have attained a level of job security that allows them to shift their focus towards serious financial goals. This stability provides the ideal backdrop for evaluating your financial aspirations and devising a plan to turn them into reality.

This is where the expertise of a financial advisor becomes invaluable. A financial advisor can be a trusted partner to guide you through the intricacies of financial planning and help you make informed decisions that align with your goals. One of the primary duties of a financial advisor is to help you chart a course towards financial success by crafting a comprehensive plan tailored to your unique circumstances. This involves delving into your financial goals, assessing your risk tolerance, and mapping out a suitable roadmap.

Budgeting lies at the heart of sound financial management, and a financial advisor can help you develop a budget that aligns with your lifestyle and priorities. They can help you bolster your savings or achieve a specific financial milestone with a well-crafted budget. With their guidance, you can identify areas where you can trim expenses, reallocate resources, and ensure that your financial resources are being utilized efficiently. In addition to budgeting, saving plays a pivotal role in building financial security and resilience. A financial advisor can help you establish a savings strategy that strikes the right balance between your immediate needs and future aspirations. They can help you set up automated contributions, explore tax-efficient savings vehicles, and offer personalized recommendations to supercharge your savings journey. Investing is another key component of wealth accumulation, and a financial advisor can provide invaluable guidance in this area. With their expertise, you can navigate the complexities of the financial markets, identify investment opportunities aligned with your risk tolerance and financial goals, and construct a diversified investment portfolio. Investing in stocks, bonds, mutual funds, or other asset classes are some things a financial advisor can help you with. A robust investment strategy designed to generate sustainable returns over the long term can greatly help you with your financial goals.

As you transition into your 30s, you may find yourself embracing a more serious and forward-thinking mindset, leaving behind the carefree days of your 20s in exchange for a greater focus on long-term goals like retirement. This decade can be a turning point in your financial journey, and while retirement may seem distant, the importance of laying the groundwork for your future financial security cannot be overstated. As you advance in your career and attain higher positions and salaries, you can increase your contributions to retirement accounts such as employer-sponsored 401(k) plans. Additionally, exploring alternative retirement savings vehicles such as Individual Retirement Accounts (IRAs), stocks, bonds, real estate, and precious metals can further bolster your retirement nest egg. A financial advisor can play a pivotal role in helping you craft a comprehensive retirement strategy customized to your unique financial circumstances and goals. They can assess factors such as your current savings, desired retirement lifestyle, risk tolerance, and time horizon and develop a personalized plan designed to maximize your long-term wealth accumulation and ensure a comfortable retirement. They can also help optimize your investment portfolio, diversify your assets, or explore tax-efficient retirement savings strategies to help you build an efficient retirement plan. Moreover, retirement planning is not a one-time event. It is an ongoing process that requires regular monitoring and adjustment. A financial advisor can provide continuing guidance and support, monitor your progress towards your retirement goals, and adjust your plan as needed to reflect changes in your life, financial markets, and economic conditions.

2. Freedom from student loans requires strategic planning

For many individuals, their 30s bring relief from the burden of student loans. With the standard repayment term for federal loans typically spanning a decade, it is highly likely that if you got out of college in your 20s, you would have likely paid off your student debt by now. With these debts paid off, you have more disposable income in your arsenal. Rather than letting this newfound financial freedom slip away, a financial advisor can help you channel it towards building wealth through strategic investment opportunities and debt management strategies.

A newfound freedom from student loans is a cause for celebration. But it also presents a unique opportunity to reassess your financial priorities and make strategic decisions about how to allocate your disposable income. While the temptation to indulge in lavish purchases or splurge on extravagant experiences may be strong, it is crucial to approach this windfall with a level-headed mindset and a long-term perspective. A financial advisor can be a voice of reason and a guiding light on your financial journey. One of the key roles of a financial advisor is to help you make sound financial decisions that align with your goals and aspirations. With their expertise and insights, they can offer valuable guidance on how to leverage your newfound financial freedom to build wealth and secure your financial future. Rather than allowing your extra income to slip through your fingers, a financial advisor can help you channel it towards investments and debt management strategies that will yield long-term benefits.

It is easy to succumb to the allure of instant gratification and spend your extra money on impulse purchases, like apparel, electronics, and other similar products. However, a financial advisor can help you control and resist the urge to splurge and instead focus on making prudent financial choices that will pay dividends in the years to come. They can help you stay disciplined and stay the course towards achieving your financial goals in your 30s. Moreover, a financial advisor can help you build a comprehensive financial plan that considers your newfound financial freedom and outlines clear objectives for wealth accumulation and financial security.  

Debt management is another area where a financial advisor can offer valuable assistance. While the elimination of student loans may free up additional funds, it is essential to address any remaining debts and develop a plan for paying them off strategically. Whether you have credit card debt, loans, or other outstanding obligations, a financial advisor can help you prioritize your debts, explore refinancing options, and develop a repayment strategy that aligns with your financial goals. Ultimately, getting a financial advisor in your 30s can help you set yourself up for long-term financial success. By providing objective guidance, offering strategic advice, and helping you stay disciplined in your financial decision-making, a financial advisor can serve as a trusted partner on your journey towards achieving your financial goals.

3. Marriage and financial consolidation may require professional help

The 30s is often a time when many people tie the knot or enter long-term partnerships. With this union comes the merging of finances. As you and your partner commit to building a life together, one of the most significant aspects you will face is the merging of your finances. This process can be both exciting and daunting. From joint ownership of assets to shared financial responsibilities, your financial goals in your 30s undergo a transformation as you and your spouse begin this journey together. You require careful planning and consideration at this time to ensure that your financial future remains secure and aligned with your shared goals.

One of the primary roles of a financial advisor in this context is to provide guidance on how to consolidate your financial accounts effectively. This may involve merging bank accounts, investment accounts, and retirement savings accounts to streamline your finances and simplify the management of your assets. With this, you can gain a clearer picture of your overall financial position and make more informed decisions about allocating your resources. Moreover, a financial advisor can help you align your financial goals as a couple and ensure that both spouses are on the same page when it comes to saving, investing, and spending. This may involve discussions about short-term goals, such as planning for a vacation or saving for a down payment on a home, as well as long-term objectives, such as retirement. A financial advisor can help you and your spouse develop a shared vision for your financial future and take the necessary steps to achieve it.

In addition to merging your financial accounts, getting married may also necessitate revisiting your financial priorities and making adjustments to your financial plan. For example, if one partner earns significantly more than the other or if one partner chooses to stay at home to care for children, there may be shifts in income and expenses that need to be addressed. A financial advisor can help you plan for these events and develop strategies to manage your finances effectively as a couple. Furthermore, marriage often involves updating your estate planning documents and beneficiary designations to reflect your new marital status. This may include updating wills, health directives, powers of attorney, and others to ensure that your estate is protected and transferred to your spouse according to your wishes in your absence. A financial advisor can help you understand the financial implications of these decisions and ensure that your financial plan is comprehensive and up to date.


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4. Planning for parenthood can be financially tricky

Entering your 30s often brings with it a multitude of life changes, one of the most significant being the prospect of starting a family. You could be planning to expand your family through childbirth, adoption, or other means. Whichever way you choose, the arrival of children is a new chapter filled with joy, excitement, and, undoubtedly, a host of financial considerations. From the costs of pregnancy and childbirth to saving for your children's education and securing their financial future, the financial implications of parenthood can be vast and varied. A financial advisor can prove invaluable in this journey and help you develop a comprehensive plan to cover all your child-related expenses and ensure their financial well-being.

One of the foremost considerations when planning for parenthood is ensuring that you have adequate insurance coverage to safeguard your family's health and well-being. A financial advisor can help you assess your insurance needs and identify the appropriate policies to provide comprehensive coverage for medical expenses, maternity care, and other healthcare needs associated with childbirth and raising children. They can guide you in selecting the right policies, such as health insurance or disability insurance, to protect your family's financial security. In addition to insurance coverage, saving for your children's education is a crucial aspect of financial planning in your 30s. With the rising costs of tuition and other college-related expenses, starting to save early is essential to ensure that your children have access to quality education without incurring crippling debt. A financial advisor can help you establish a college savings plan, such as a 529 plan, which offers tax advantages and flexible investment options specifically designed for education expenses. Contributing regularly to a 529 plan can help you build a substantial nest egg to cover your children's educational needs and provide them with opportunities for academic success.

Furthermore, financial planning takes on added significance if you have a child with special needs. Children with special needs may require additional support and resources throughout their lives, and a financial advisor can help you create a comprehensive plan to ensure that their unique needs are met. This may involve setting up special needs' trusts, exploring government benefits programs, and more to create a holistic plan that safeguards your child's financial well-being both now and in the future. Planning for parenthood also entails addressing estate planning considerations to protect your children's interests in the event of your passing. A financial advisor can help you draft wills, establish trusts, and designate guardianship arrangements that reflect your wishes and provide financial support for your children. Creating a robust estate plan can ensure that your children are provided for and that your assets are distributed according to your wishes, providing peace of mind for you and your family.

5. Homeownership can be achieved with professional financial advice

Homeownership is one of the many financial goals in your 30s that is likely to become a reality. While owning a home represents a significant milestone and a source of pride, it also entails a host of financial considerations and responsibilities. One of the biggest hurdles to homeownership for many individuals in their 30s is saving for a down payment. A financial advisor can help you develop a savings plan tailored to your financial situation and goals and help you efficiently accumulate the funds needed for a down payment. They can help you efficiently leverage various savings strategies and investment vehicles to build a solid financial foundation and reduce your reliance on mortgage financing.

Once you have secured a mortgage to purchase your home, a financial advisor can assist you in optimizing your mortgage payments and managing your debt effectively. They can help you evaluate different mortgage options, such as fixed-rate mortgages versus adjustable-rate mortgages and choose the option that best aligns with your financial goals and risk tolerance. Additionally, they can advise you on strategies to accelerate your mortgage payoff and save on interest costs over the long term. Over the course of homeownership, it is not uncommon for individuals to consider refinancing their mortgage to take advantage of lower interest rates or adjust their loan terms. A financial advisor can help you assess whether refinancing makes sense for your specific circumstances and guide you through the process to ensure a smooth transition.

Your mortgage represents a significant financial obligation that should be integrated into your broader financial plan. A financial advisor can help you incorporate your mortgage payments into your budget and ensure that they align with your overall financial goals and priorities. Getting a financial advisor in your 30s can help you strike the right balance between mortgage payments and other financial obligations. These professionals can help you maintain financial stability while working towards your homeownership objectives. Homeownership can also present opportunities for generating additional income through renting or leasing. You may consider renting out a spare room, converting a portion of your home into a rental property, or exploring short-term rental options through online platforms. A financial advisor can help you evaluate the financial implications and risks associated with these opportunities. They can provide guidance on rental income potential, tax considerations, landlord responsibilities, and investment strategies to maximize your returns while mitigating risks.

Financial advisors can also help you deal with property taxes. They can help you understand how property taxes are assessed and how they impact your overall financial situation. They can explain the factors that influence property tax rates, such as property value assessments, local tax laws, etc. Additionally, advisors can also assist in incorporating property taxes into your budgeting and financial planning process.

To conclude

Your 30s are not just a time of personal and professional growth. They are also a critical juncture in your financial journey. It is during this decade that the decisions you make can have a profound impact on your long-term financial well-being. Saving for retirement, purchasing a home, starting a family, or pursuing other financial targets, all of these financial goals in your 30s can be achieved in a more streamlined manner with the guidance of a financial advisor. Moreover, working with a financial advisor can also provide you with peace of mind, knowing that you have a support system and guide who is dedicated to helping you achieve your financial goals.

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The blog articles on this website are provided for general educational and informational purposes only, and no content included is intended to be used as financial or legal advice.
A professional financial advisor should be consulted prior to making any investment decisions. Each person's financial situation is unique, and your advisor would be able to provide you with the financial information and advice related to your financial situation.