Many people think financial planning is only for the wealthy or those near retirement.
The truth is that working with a financial planner at the right time can help you build wealth, avoid costly mistakes, and achieve your goals faster—regardless of your current financial situation.
Here's when you should consider working with a financial planner.
Key Life Moments That Signal It's Time
1. Starting Your First Career Job
Why Now:
Your early career years are the most powerful time to build wealth due to compound growth. A financial planner can help you:
- Set up retirement contributions to maximize employer matches
- Create a budget that balances saving and living
- Establish an emergency fund
- Avoid common financial mistakes that delay wealth building
- Understand stock options, benefits packages, and 401(k) choices
Even if: You have student loans or limited income, establishing good habits early pays massive dividends over decades.
2. Getting Married or Moving in Together
Why Now:
Combining finances requires strategy and communication. A financial planner helps you:
- Merge accounts and debt strategically
- Align financial goals and values
- Update beneficiaries and create estate documents
- Plan for major purchases like homes
- Navigate different money management styles
- Create joint budgets while respecting individual needs
Even if: One partner earns significantly more or brings debt to the relationship, a planner provides neutral guidance.
3. Buying Your First Home
Why Now:
A home is likely your largest purchase. Financial planners help you:
- Determine what you can truly afford (not just what lenders approve)
- Balance down payments with retirement savings
- Understand the full cost of homeownership
- Structure your overall finances around mortgage payments
- Plan for property taxes, insurance, and maintenance
Even if: You're just starting to save for a down payment, planning early prevents mistakes.
4. Having or Adopting Children
Why Now:
Children dramatically change your financial picture. A financial planner helps you:
- Create or update estate plans and guardianship documents
- Calculate life insurance needs
- Start education savings (529 plans)
- Adjust budgets for new expenses
- Plan for childcare costs
- Balance current needs with future college expenses
Even if: Money feels tight with new baby expenses, planning prevents long-term shortfalls.
5. Receiving a Large Sum of Money
Why Now:
Inheritances, bonuses, stock option exercises, or business sales require careful planning. Financial planners help you:
- Minimize tax impact
- Invest strategically rather than emotionally
- Avoid lifestyle inflation
- Balance debt payoff with investment opportunities
- Create sustainable wealth rather than spending windfalls
Even if: The amount seems modest, professional guidance prevents costly mistakes.
6. Changing Jobs or Careers
Why Now:
Job transitions involve important financial decisions. Financial planners guide you through:
- 401(k) rollover decisions
- Negotiating compensation packages
- Understanding stock options and equity compensation
- Maintaining insurance coverage gaps
- Adjusting budgets for income changes
- Planning for self-employment transitions
Even if: Your new job pays less initially, proper planning prevents long-term setbacks.
7. Starting a Business
Why Now:
Business ownership creates complex financial needs. Financial planners help you:
- Separate personal and business finances
- Set up retirement plans for business owners
- Plan for irregular income
- Manage business and personal cash flow
- Create exit strategies
- Balance business investment with personal financial security
Even if: Your business is just starting, establishing structure early prevents problems.
8. Going Through Divorce
Why Now:
Divorce fundamentally restructures your finances. Financial planners help you:
- Understand the financial implications of settlement options
- Divide assets tax-efficiently
- Create post-divorce budgets
- Update estate plans and beneficiaries
- Plan for single-income household management
- Rebuild financial independence
Even if: Emotions are high, objective financial guidance protects your future.
9. Approaching or Entering Retirement
Why Now:
The decade before and after retirement is crucial. Financial planners help you:
- Determine if you can afford to retire
- Create sustainable withdrawal strategies
- Optimize Social Security claiming decisions
- Manage healthcare costs and Medicare
- Plan required minimum distributions (RMDs)
- Balance spending with portfolio longevity
Even if: You're years from retirement, early planning reveals gaps to address.
10. Dealing With Aging Parents
Why Now:
Caring for aging parents involves financial responsibilities. Financial planners help you:
- Coordinate family financial support
- Understand long-term care options and costs
- Navigate Medicare and Medicaid
- Plan for potential inheritance
- Balance parent care with your own financial security
- Establish powers of attorney and estate documents
Even if: Parents are currently healthy, planning prevents crisis decisions.
Signs You Should Work With a Financial Planner Now
Beyond major life events, these situations indicate you'd benefit from professional guidance:
You're Earning Well But Not Building Wealth
If you have a good income but limited savings, a financial planner identifies where money disappears and creates systems to build wealth.
You Have Multiple Financial Goals
Balancing retirement savings, home purchase, college funding, and debt repayment requires strategic prioritization.
You're Unsure About Investment Decisions
If you're confused about 401(k) options, don't know how to invest outside retirement accounts, or worry about market volatility, professional guidance provides clarity.
You Have Complex Tax Situations
Stock options, rental properties, side businesses, or high incomes create tax planning needs that financial planners address.
You're Carrying High-Interest Debt
Strategic debt payoff plans balanced with savings goals accelerate financial progress.
You Don't Have Estate Documents
Wills, powers of attorney, and beneficiary designations need professional coordination.
You're Overwhelmed by Financial Decisions
If financial stress affects your sleep or relationships, professional guidance provides peace of mind.
You Want to Retire Early
Early retirement requires sophisticated planning to ensure money lasts.
You've Experienced Major Financial Setbacks
Job loss, medical bills, or other financial challenges need professional recovery strategies.
You Want a Second Opinion
Even if you manage finances yourself, periodic professional reviews catch blind spots.
It's Never Too Early or Too Late
Why Starting Early Matters
Time is your greatest asset. Someone starting retirement contributions at 25 versus 35 can contribute half as much and still end up with more money due to compound growth.
Example:
- Start at 25, contribute $300/month until 65: Approximately $1,000,000 (assuming 7% returns)
- Start at 35, contribute $300/month until 65: Approximately $470,000
That 10-year delay costs over $500,000.
Why Starting Later Still Helps
If you're 45, 55, or 65 and haven't worked with a planner, starting now still provides tremendous value:
- Optimize remaining working years
- Maximize Social Security strategies
- Create efficient withdrawal plans
- Avoid costly mistakes
- Make the most of what you have
What to Expect When Working With a Financial Planner
Initial Consultation
Most planners offer free initial consultations to:
- Understand your situation and goals
- Explain their services and approach
- Discuss fees and how they're compensated
- Determine if you're a good fit
Comprehensive Financial Planning Process
Discovery: You'll provide detailed financial information—income, expenses, assets, debts, insurance, and goals.
Analysis: The planner reviews your complete financial picture, identifying strengths, weaknesses, and opportunities.
Recommendations: You receive a customized plan addressing your specific situation and goals.
Implementation: The planner helps you execute recommendations—opening accounts, purchasing insurance, adjusting investments.
Ongoing Relationship: Regular reviews ensure your plan stays aligned with changing life circumstances and goals.
Understanding Financial Planner Fees
Fee-Only Planners
Charge directly for services through:
- Hourly rates: $150-$400/hour for specific questions
- Flat fees: $1,500-$5,000+ for comprehensive plans
- Asset-based fees: Typically 0.5%-1.5% of managed assets annually
- Retainer fees: Monthly or annual fees for ongoing service
Commission-Based Planners
Earn commissions from products they sell (insurance, investments). This creates potential conflicts of interest.
Fee-Based Planners
Combination of fees and commissions.
Best Practice: Work with fee-only planners who are fiduciaries—legally required to act in your best interest.
How to Choose the Right Financial Planner
Credentials to Look For
CFP® (Certified Financial Planner): Comprehensive financial planning certification requiring rigorous testing and ongoing education.
ChFC® (Chartered Financial Consultant): Similar to CFP with extensive coursework requirements.
CFA® (Chartered Financial Analyst): Investment management focused.
CPA/PFS (Certified Public Accountant/Personal Financial Specialist): Tax planning expertise combined with financial planning.
Questions to Ask
- Are you a fiduciary?
- How are you compensated?
- What credentials do you hold?
- Who are your typical clients?
- What services do you provide?
- How often will we meet?
- What is your investment philosophy?
- Can I see a sample financial plan?
Red Flags
- Guarantees of specific returns
- Pressure to act quickly
- Unwillingness to explain fees clearly
- No credentials or licenses
- Only sells products from one company
- Won't provide references
Colorado Springs Considerations
Cost of Living
Colorado Springs offers relatively affordable living compared to Denver or coastal cities, making wealth building more achievable with proper planning.
Military Population
Financial planners familiar with military benefits, deployments, and VA loans provide specialized value for service members at nearby bases.
Retirement Destination
Many retirees choose Colorado Springs, creating demand for retirement income planning expertise.
Outdoor Lifestyle
Colorado's recreational opportunities require planning for equipment, travel, and adventure while balancing financial goals.
Growing Economy
Colorado Springs' expanding job market creates opportunities that financial planners help you maximize.
Common Mistakes People Make
Waiting Until They "Have Enough Money"
Financial planning isn't just for the wealthy. Early planning helps you build wealth faster.
Trying to Do Everything Alone
Personal finance is personal, but professional guidance prevents costly mistakes.
Only Focusing on Investments
Comprehensive financial planning addresses insurance, taxes, estate planning, and risk management—not just portfolio returns.
Not Updating Plans
Life changes constantly. Financial plans need regular updates to stay relevant.
Choosing Based on Fees Alone
The cheapest option often costs more long-term. Value matters more than price.
Frequently Asked Questions
How much money do I need to work with a financial planner?
Many planners work with clients at all wealth levels. Some specialize in young professionals or specific situations regardless of assets. Ask during initial consultations about minimum requirements.
Can I afford a financial planner?
Financial planning often pays for itself by avoiding mistakes, optimizing taxes, and accelerating wealth building. Fees are investments in your financial future, not expenses.
What's the difference between a financial planner and a financial advisor?
Terms are often used interchangeably, but "financial planner" typically implies comprehensive planning beyond just investment management. Always verify credentials and services offered.
How often should I meet with my financial planner?
Most clients meet quarterly or semi-annually for reviews, with additional meetings during major life changes. Ongoing relationships provide the most value.
Can I work with a financial planner for a one-time plan?
Yes. Many planners offer one-time comprehensive plans, though ongoing relationships provide better results as your situation evolves.
Do I need a local financial planner or can I work with someone remotely?
Both work. Local planners understand Colorado-specific considerations, but remote planners often provide excellent service through video meetings. Choose based on expertise and fit.
What if I already have a 401(k) through work?
Financial planners help you optimize 401(k) decisions, coordinate with outside investments, and create comprehensive strategies beyond workplace retirement plans.
Will a financial planner tell me I need to cut spending?
Good planners help you align spending with values and goals, not impose restrictions. It's about making intentional choices, not deprivation.
Start Planning Your Financial Future Today
The best time to start working with a financial planner is now—whether you're 25 or 65, just starting out or approaching retirement, earning your first paycheck or managing complex wealth.
Financial planning isn't about having all the answers. It's about getting expert guidance to make better decisions, avoid costly mistakes, and achieve your goals faster.
Every day you wait is a day you're not optimizing your financial life.
Schedule a free consultation with EJC Insurance & Financial:
📞 Colorado Springs: (719) 685-8585
✉️ hello@ejcteam.com
Our team of experienced financial planners helps Colorado Springs residents at every life stage create comprehensive financial plans aligned with their unique goals. We provide fiduciary advice focused on your best interests, not sales quotas.
Whether you're just starting your career, navigating a major life transition, or planning retirement, we're here to help you build the financial future you've always dreamed of.
Plan for Your Future Today - Schedule Your Free Consultation!
