I’m 34 with a 7-figure nest egg – will getting a financial advisor help me to retire early faster?
There was a time when I didn’t think I needed a financial advisor. For one thing, I’m not a stranger to investing. I’ve bought and sold plenty of stocks in my day, and I understand how to balance a…
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There was a time when I didn’t think I needed a financial advisor. For one thing, I’m not a stranger to investing. I’ve bought and sold plenty of stocks in my day, and I understand how to balance a portfolio and the importance of diversification.
Also, writing about financial matters is what I do professionally. And to do that, I clearly need to know a thing or two about investing and working toward different goals.
For this reason, I didn’t bother getting a financial advisor until I was about in my mid-30s. But since signing up with one, I can say that I feel more confident about meeting my personal goals.
Because of my experience, I found this Reddit post intriguing. Here, we have a 34-year-old with a seven-figure net worth. And they want to know if using a financial advisor will be helpful in allowing them to reach their early retirement goal.
My answer to this question is a pretty clear “yes.” But I think it’s smart that this poster consult with a financial advisor for more reasons than one.
The upside of getting financial help
The poster above is obviously in a good place financially. They have a lot of savings and earn a good income. But that doesn’t necessarily mean early retirement is a smart idea for them.
There are many pitfalls early retirees tend to encounter, from unexpected healthcare expenses to inflation. And it’s important to consult an advisor who can discuss those risks and find ways to help mitigate them. For example, the right investment mix could generate enough income to allow for some unplanned costs.
Also, it’s one thing to retire early in one’s 50s, but it’s a very different thing to retire in one’s 30s or 40s. It’s clear that this poster wants to retire as early as they possibly can. But that could mean having to stretch their savings for five decades or longer.
In that situation, a financial advisor’s help may be crucial. An advisor can help them find the ideal investment mix that lends to steady growth without taking on undue risk.
It’s not a matter of net worth
Working with a financial advisor should not hinge on how much or how little money you have. It’s a big myth that advisors only want to work with high net worth clients. And it’s also not a given that you know what you’re doing financially because you’ve amassed a lot of money to date.
Frankly, some people just get lucky by making one or two smart investments and cashing out. Others end up with a lot of money because it’s passed down to them from older generations.
And look, some people amass a large net worth because they work hard at high-paying jobs — but that still doesn’t make them expert investors. So I’d recommend consulting a financial advisor if early retirement is a big goal. Not only might a professional help make that happen sooner, but they might help make it happen in a more stress-free manner.
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Maurie Backman has more than a decade of experience writing about financial topics, including retirement, investing, Social Security, and real estate. Her work has appeared on sites that include The Motley Fool, USA Today, U.S. News & World Report, and Kiplinger.
Prior to becoming a full-time financial writer, Maurie worked in the financial industry trading distressed debt. She then changed course and spent a few years designing electronic toys. After a stint in content marketing and UX, she shifted back into writing and has since covered everything from the housing market to estate planning to Medicare.
When she's not busy writing, Maurie can be found hiking, walking her dogs, driving her kids to their various sports practices and games, and curling up with a good book. She cooks on occasion and bakes way too often.
