Scroll YouTube, TikTok, or Instagram long enough and you’ll find hundreds of videos confidently telling you that you don’t need a financial advisor.
After 13 years as a financial advisor, working with everyone from recent graduates to retirees worth $50 million, I can tell you something important:
Sometimes they’re right. Sometimes they’re dangerously wrong.
The real answer isn’t yes or no. It depends on where you are financially.
Over the years, I’ve found that people fall into five distinct levels of financial need. Some of those levels don’t require an ongoing advisor at all. Others absolutely do.
Let’s walk through them.
Level One: Just Getting Started
Level one is typically someone just out of college or early in their career.
You’re earning your first real paycheck. You’re trying to understand your employer’s 401(k), maybe a Roth IRA, basic insurance, and how to avoid obvious mistakes.
At this stage, you do not need an ongoing financial advisor.
What you do need is direction.
An hour or two with a competent advisor, even paid hourly, can help you:
- Set up retirement accounts correctly
- Understand basic insurance needs
- Avoid common early mistakes
Once that’s done, your goal is simple: get to level two.
Level Two: Assets, Responsibilities, and Real Life
Level two begins when life starts to get more complicated.
You may own a home, have a mortgage, a car loan, or student debt. You may have just gotten married or had a child. Someone else is now depending on your decisions.
At this stage, you still don’t need a full-time advisor checking in quarterly.
But you do need a second set of eyes.
Meeting with a financial advisor once every two or three years can help ensure:
- You’re saving enough (not just saving blindly)
- You’re not missing tools like HSAs or disability insurance
- Your goals are realistic and measurable
One of the biggest mistakes I see at this level is people saving money without knowing how much they actually need to save. A one-time financial plan can give you clarity and confidence.
That clarity is what moves you into level three.
Level Three: Real Decisions, Real Consequences
Level three is where things change.
You’re 10, 15, or 20 years from retirement. College costs are approaching. Taxes start to matter more. You’re no longer just accumulating, you’re making tradeoffs.
This is the first level where you truly need a financial advisor.
I believe you need an advisor at this level because:
- You only retire once
- You don’t get a do-over
- Missing one major decision can set you back years
At this level, an advisor should meet with you at least annually and help coordinate:
- Retirement projections
- College planning
- Tax strategies
- Investment decisions aligned with your goals
Preparation matters here. Knowing your expenses, assets, liabilities, and savings allows your advisor to give you good advice instead of generic advice.
Level Four: The Retirement Red Zone
Level four includes people who are within five years of retirement or already retired.
This is one of the most dangerous financial periods of your life.
The five years before and after retirement often determine whether your money lasts—or whether you’re forced back to work.
A common mistake? Retiring with investments that are too aggressive.
I’ve seen people retire in 2006 or 2007 thinking everything was fine, only to watch markets collapse. Without proper planning and allocation, some had to “retire twice.”
At this level, working with an advisor is non-negotiable. You need someone who understands:
- Income planning
- Risk management
- The transition from earning money to spending money
That transition is far harder than most people expect.
Level Five: Complexity and Generational Wealth
Level five isn’t age-based. It’s complexity-based.
This includes:
- Business owners
- People with significant investable assets
- Families focused on multigenerational wealth
A 35-year-old business owner with a $3 million company may need advanced tax strategies. A 55-year-old with $15 million may be focused on estate planning and preparing heirs.
At this level, the advisor’s role expands:
- Tax mitigation strategies
- Estate and legacy planning
- Coordinating with CPAs and attorneys
- Helping families avoid the “shirtsleeves to shirtsleeves” problem
This is where financial advice becomes less about investments and more about outcomes and impact.
So… Do You Need a Financial Advisor?
Here’s the simple takeaway:
- Level 1: No ongoing advisor
- Level 2: Periodic check-ins
- Levels 3–5: A qualified advisor is critical
Instead of listening to random gurus online, use this framework to decide based on your situation.
And if you’re in levels three through five and don’t yet have an advisor, that’s a risk worth addressing.
Because the cost of bad advice or no advice at all is almost always higher than doing it right the first time.
Identify yourself as Level 3, 4, or 5? Schedule a Discovery Call to stop managing complexity alone and start building a real plan.