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When Is the Best Time to Hire a Financial Planner?

When Is the Best Time to Hire a Financial Planner?

| May 02, 2023


Financial planners play a crucial role in helping you meet your retirement goals and manage your assets. But when should you hire one? 


The short answer is – the sooner, the better. Of course, the longer answer is a bit more complicated, but the goal is to hire a financial advisor with tax experience before any significant life changes. 


Engaging a financial planner you can trust when you begin accumulating assets is ideal. We can help you navigate funding your retirement and maximize your tax savings. We can also objectively assess your goals and determine if significant changes in strategy are needed to get you there. If you’re already several years into asset accumulation, the perfect time is now. 

The Time Is Now: Why You Should Hire a Financial Planner Before Retirement 

Hiring an advisor a few years before your anticipated retirement date is optimal. The extra time allows you to review your assets, assess your estimated retirement date, and make wise choices that can help you reduce your tax liability. You only get one shot at retirement, so you’ll want to ensure you have a thorough plan. The goal of your strategy should be to utilize your assets so that you can have the lifestyle you want without running out of money during your lifetime.


If you’re unsure when you’ll be able to afford to retire, reach out to our experienced financial planners today so we can evaluate your needs and assets. 

Assess Your Present to Plan for Your Future

Understanding where you are today will allow you to decide if what you have put away is enough to give you the retirement experience you want. 


Your primary goals for working with a financial planner are:


  1. Reducing your tax bill now and in the future.
  2. Making sure you have enough money to retire when you want to.
  3. Understanding when you can retire and afford the lifestyle you want. 
  4. Choosing the right risk level during this season of life and ensuring your nest egg will last the rest of your life. 


Developing a healthy financial plan is also vital if you expect to retire soon due to health, impending layoffs or buyouts, or you just can’t stand going to work any longer than necessary. Hiring a financial planner six months before that date will give you time to optimize your tax strategy and put money-saving plans into place before retirement.

Planning to Reduce or Retire

Working with an experienced financial planner before retirement is essential, even if you are excitedly planning on stepping into a second career or working part-time. We highly recommend meeting with a financial planner several months before transitioning. Advisors can facilitate a smooth transition without experiencing a significant decrease in monthly income. There could be even more opportunities for Roth conversions and other tax strategies during this time period because there’s a longer runway to the date you’re going to retire fully. An experienced financial planner can help you make the most of your existing assets and those you’ll accumulate in the future. 

Change is Inevitable: Planning for Life-Changing Events

Significant life events are always a good time to hire a financial planner, and this becomes even more true as you approach retirement.Life-changing events will significantly impact your plans and the assets you have heading into retirement. 


For example, receiving a large inheritance will boost your assets but may require a shift in your strategy to minimize your tax liability. On the other hand, the blessing of a considerable inheritance also creates the opportunity to increase your enjoyment during retirement and create new opportunities. As soon as you become aware of an impending inheritance, connect with (or hire) your financial planner so they can help you update (or create) your strategy. 


If you’re a small business owner approaching retirement, connect with a financial planner experienced in business transaction tax strategies before selling your business. If you’re like most business owners, the proceeds from this sale will be your biggest asset, and you’ll need it to last the rest of your life. You’ve invested a lot into growing your company and need a solid plan to help you transition those assets into your retirement plan.  

Retire Confidently with Bestgate Wealth Advisors

Our mission at Bestgate Wealth Advisors is to assist you in gaining clarity, enabling you to create a solid plan for your financial future, minimize taxes, and retire with confidence. We are a fiduciary financial advisory and wealth management firm that specializes in tax optimization for individuals within 5 years of retirement. Our team, composed of experienced CPAs and CFP® practitioners, integrates genuine tax planning into your financial and investment strategies. Contact us´╗┐ today to start planning for your best future.