Guidance That Grows With You

For many, reaching out to a financial advisor happens only when a major life event prompts new considerations – maybe it’s receiving a large inheritance, selling a business or navigating a divorce. And while advisors play an instrumental role in helping clients through times of uncertainty, their true value emerges when they’re involved across every stage of life – offering consistent guidance, proactive planning and confidence along the way.

Here’s how creating not only a wealth plan – but a relationship – with an advisor early on can make all the difference for your financial confidence:

Stage One: Building Wealth

As soon as you start earning income and building your financial foundation, an advisor can be key to helping you make informed decisions. And when entering the workforce, there are a few common financial considerations that come up right away – like managing student loan debt, establishing an emergency fund and beginning your investment journey. At first glance, these planning elements may seem simple – but how you handle them now can impact the trajectory of your financial future. Not only can an advisor provide you with debt management, budgeting and investing strategies that support you today, but they can tailor those strategies to work towards your future goals.

A prime example of this is a financial advisor’s role in creating an investment plan. Sure, it’s easy to throw a couple hundred dollars into an investment fund and direct some income to your 401(k) – but an advisor will consider your young age, tax situation, risk tolerance, long-term goals and more before guiding you on an investment path that is suitable for your situation. Then, they can adjust the plan as you go through life changes. There’s no shortage of investment advice available via the internet these days, but a robo-advisor, Reddit thread or YouTube video can’t advocate for your success the way a human advisor can – and they also can’t be there to reassure you when the markets start getting volatile.

This relationship you build with your advisor early on pays off as you begin taking on new responsibilities and your financial situation becomes more complex. Maybe you:

• Buy your first house, and your advisor helps you decide the best loan option, how much of a down payment to make and which tax strategies you can leverage.
• Get married and start a family, and your advisor helps you feel confident in a new monthly budget, set up a college savings fund, assess your new insurance needs and create an estate plan that considers your children.
• Start caring for your aging parents, and your advisor helps your family navigate long-term care expenses and life insurance coverage.

Each major life change brings new financial considerations that are unique to you – and whether you simply want reassurance you’re doing it right or want an expert to take the heavy lifting off your plate, partnering with a financial advisor can fulfill both of those needs.

Stage Two: Preparing for Retirement

As you reach the prime of your career, your responsibility peaks. Many are juggling kids, mortgages, a job and sometimes even caring for aging parents. On top of that, retirement is inching closer – and many wonder whether they’re on track to live out their golden years the way they’d like.

The financial components that come with this life stage are specific to your situation, and often even unpredictable. A financial advisor can help you make confident decisions about these elements, like:

• Evolving family situations: How should your goals change once your child goes to college? What’s the best way to manage the inheritance left to you by a deceased parent?
• Housing decisions: Could you be accelerating your mortgage payments? Is it an ideal time to downsize, or do you have an opportunity to invest in home renovations?
• Changing insurance needs: Is your life insurance coverage still adequate? Do you have health concerns that long-term care insurance could help protect against?

Along with these considerations, though, an advisor can be instrumental in helping you maximize your retirement savings as you finish out your working years. Now that you’re likely bringing home a higher income, you’ll have more resources to maximize contributions to your 401(k) and IRA – but on top of that, an advisor can help you build a tax strategy for retirement. Are your various retirement contributions to taxable, pre-tax and post-tax vehicles effective for your situation? Are your investments adequately diversified and aligned with your risk tolerance?

Answering these questions alone can be challenging – but that’s why leaning on a financial advisor who understands you and the trajectory of your life is invaluable. Not only can they help answer these difficult questions, but they can proactively adjust your plan when they know life changes – like retirement – are coming your way.

Stage Three: Enjoying Your Wealth

When you enter retirement, your focus shifts from saving to spending – and that transition can be tough for many. Managing your wealth in retirement is tricky because there are so many elements to consider, like:

• Withdrawal strategies: How much and when you pull from your various retirement accounts can make or break your retirement plan. An advisor can help you coordinate withdrawals to maximize both your income and tax efficiency.
• Investment management techniques: Nowadays, people are living longer – so it could be in your best interest to keep investing some of your savings for the long term. An advisor can help you adjust the asset allocation to match your risk tolerance and implement strategies to protect you against market volatility.
• Healthcare coverage: With the help of an advisor, you can review your Medicare coverage and create a plan for gaps in services it doesn’t cover, like dental or vision care. An advisor can also help you explore options for long-term care or organize funding for assisted living.
• Estate planning elements: At this point, it’s essential to ensure you have the proper will, trust, power of attorney documents and more in place. Along with that, an advisor can help you fulfill your philanthropic and wealth transfer goals – both now and generations into the future.

Every client walks their retirement journey one time – but financial advisors walk it with their clients over and over again. They know what works and what doesn’t, and can provide both expertise and reassurance that you’re right on track to thrive.

When you partner with a financial advisor on your entire wealth management journey, you gain more than just expertise – you gain a steady hand through complexity. Beyond offering objective and expert guidance on the many moving parts of your financial life, a trusted advisor can serve as an anchor – helping keep your strategy grounded when markets fluctuate and emotions run high.

This article was originally published in March 2020 and updated in July 2025.

The information offered is provided to you for informational purposes only. Robert W. Baird & Co. Incorporated is not a legal or tax services provider and you are strongly encouraged to seek the advice of the appropriate professional advisors before taking any action. The information reflected on this page are Baird expert opinions today and are subject to change. The information provided here has not taken into consideration the investment goals or needs of any specific investor and investors should not make any investment decisions based solely on this information. Past performance is not a guarantee of future results. All investments have some level of risk, and investors have different time horizons, goals and risk tolerances, so speak to your Baird Financial Advisor before taking action.