How Much Do You Need Banked Before Working With a Financial Advisor?

A 34-year-old Reddit user with $3.3 million is considering retiring soon. She said her husband plans to keep working to provide healthcare for the family, and the couple has no kids and no plans to have children. The Redditor estimates she’ll need around $80K to $100K per year to cover her share of the family’s expenses, and she wants to spend her days volunteering at an animal shelter and doing some painting. 

However, the Redditor isn’t sure if she should work with a financial advisor first in order to help her run the numbers, ensure she has a good plan for retirement withdrawals, and confirm that she isn’t missing anything and is really ready to retire. She’s wondering if this is a situation where she actually needs an advisor, though.

So, the big question is, how much money do you actually need banked before you talk to a financial advisor, and when is getting professional advice on your finances worth paying for?

You probably need less money than you’d think before working with a financial advisor

In this particular situation, it’s very clear that the Redditor has enough money (and a big enough life decision to make) that talking with a financial advisor just makes good sense. A net worth of $3.3 million is very high, but if the poster is planning on retiring at 34 and wants to make sure she’s actually in a good financial position for her funds to support her for decades, getting professional advice is still the best course of action. 

The advisor can help her to see what her life would look like over the long term if she lives on her nest egg, and can also work with her to make sure she has the right asset allocation so she isn’t taking on too much risk. The advisor can even help her develop tax-efficient strategies for retirement account withdrawals and work with her to choose a safe withdrawal rate to preserve her nest egg for as long as she needs it. 

While it is obvious that $3.3 million would be enough to get professional advice, the reality is that you should likely work with an advisor even if you have far less money — if you have important questions about your finances. There are plenty of fee-only financial advisors who charge relatively affordable rates and who work with people who have only a small amount of savings — or even no savings at all. 

A financial advisor is there to help you get your financial life on track

There’s a common misconception that you should only get help from a financial advisor if you are rich, but that is the furthest possible thing from the truth. Advisors can help you to make the kinds of decisions you need in order to create wealth, and those who struggle to save or who are just getting started may actually benefit more from getting professional advice than people like the Reddit poster who already have millions and who have shown they can succeed financially on their own. 

There are a ton of money decisions you need to make throughout your life, and if you’re stumped about any of them, reaching out to a financial advisor can help you to make the kinds of long-term life choices that set you up for success. 

So, the Redditor shouldn’t hesitate to get advice about how to create the life she wants going forward, and no one else should either. If you can afford to pay a financial advisor, can find one charging reasonable fees, and feel like you need any help with your money at all, you should get that assistance. Your finances are too important not to get the advice you need to make the choices that are right for you. 

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