5 Reasons to Get a Financial Advisor in Your 20s

5 Reasons to Get a Financial Advisor in Your 20s

Why You Should Get a Financial Advisor in Your 20s

A financial advisor working with a couple in their 20s.

Financial planning is an important aspect of life, regardless of age or economic status. It requires making educated decisions about your finances to effectively pursue your life ambitions. For many, this process may be difficult to understand. This is where the role of financial advisors becomes crucial. They offer advice and guidance on a variety of financial issues, including budgeting, investing, retirement planning, tax planning and insurance. Financial advisors provide a comprehensive view of your financial situation and help you make informed decisions to achieve your financial goals.

Although not often considered by young adults, the importance of financial planning for those in their 20s cannot be overstated. This phase often brings a series of financial obstacles such as dealing with student loan debt, landing a first job or planning for important life milestones such as buying a home or starting a business. and family. A financial advisor can help navigate these challenges, building a solid financial foundation for your life.

How A Financial Advisor Can Help You

A couple in their 20s work with a financial advisor

It can be hard to justify the expense of a financial advisor in your 20s, especially if you don’t think you’ve accumulated enough assets. However, if you have a decent amount of money (~$50,000+) then it might be worth the cost. Here are five specific things that a financial advisor can help you with.

1. Create a Long-Term Financial Plan

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A mistake many people make in their 20s is not having a long-term financial plan and not knowing what they are saving or investing. It may take decades of implementing a financial plan before you have enough money to retire. More and more young people want to retire early, but it’s almost impossible to do if you don’t plan ahead.

Talk to a financial advisor to figure out a plan to reach your goals.

2. Helping You Invest

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You probably know that you need to start investing, especially in order to accumulate enough money to save for your desired retirement. An expert can help match your goals, risk appetite and ensure your portfolio is well diversified. In addition, there are likely to be many properties that can help you achieve your goals that you are not familiar with. Advisors can help you understand each one and help you invest in the most suitable one.

3. Launch Your Retirement Savings

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The earlier you start saving for retirement, the more options you have to retire early and the more money you have to enjoy your golden years. The benefit of compound interest is that your account can continue to grow over time. The more time you have, the more it can grow. Starting to save for retirement in your 20s can make a big difference in your future.

There are many things to consider for retirement. A financial advisor can help you make early small decisions that add up big time.

4. Helping You Build a Strong Financial Attitude

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One of the biggest issues people face in achieving their long-term financial goals is making the right financial habits when they are young. It’s okay to need help finding the right balance of financial habits that will help you reach the financial future you want. Strong habits can be the difference in hitting the milestones you need to achieve your long-term goals. You can have more money to pay off debt, buy a house or even retire if you want.

5. Help You Eliminate Debt

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Many people in their 20s are dealing with a lot of debt, especially student loans and credit card loans. The Federal Reserve reports that the average American has $32,000+ in student debt and $7,279 in credit card debt. These numbers often lead to financial hardship and the habits that create these debts are made while you are in your 20s.

While financial advisors are not the only solution to eliminating debt, their expertise can make certain strategies more accessible. They can develop strategies for managing this debt, help create a budget, understand interest rates and prioritize payments.

Financial advisors can advise clients on the easiest and most effective ways to eliminate debt.

Bottom Line

A financial advisor working with a couple in their 20s

Financial planning is not a one-size-fits-all trip. Your financial needs and resources should come first in evaluating whether a financial advisor is right for you. Identify your financial goals and evaluate the type of help you need. Check out the different types of advisors and their fees to make an informed decision. Finding the right advisor for you will depend on your financial situation, your financial goals and the value you place on the advice.

Financial Planning Tips

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  • It is important to make a financial plan as early as possible. The best way to do that if you are inexperienced is to find a financial advisor who can help. They can provide you with the expertise and guidance to help you achieve your short and long term financial goals. Finding a financial advisor doesn’t have to be difficult. SmartAsset’s free tool matches you with up to three vetted financial advisors serving your area, and you can have a free initial call with your advisor matches to decide who you feel is a good fit. suits you. If you’re ready to find an advisor who can help you achieve your financial goals, get started today.
  • You can also get insight into how your portfolio might look with certain investments by using SmartAsset’s free investment calculator.

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.

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