While it’s harder for young adults, there are ways to alleviate the pressure, such as seeking expert financial advice.
We explore what a financial advisor does, what young people need to consider with their finances, and how an advisor can help.
Summary
- Professional financial advice can help people reach their long-term goals.
- For young people, some of the most significant goals may include getting married, starting a family, buying a home, or planning for a stable retirement.
- Unbiased can quickly match you with a qualified financial advisor.
What is a financial advisor?
A financial advisor is an expert in financial planning who can help individuals reach their long-term goals. They can assist with:
- Retirement planning
- Investing and savings
- Estate planning
- Buying a home
- Managing expat finances
- Saving for your child’s education
- Funding long-term care
- Finding the right insurance policies
- Optimizing and managing business finances
A financial advisor will take into account an individual’s unique circumstances and goals to recommend the best course of action, potentially helping to save money and reduce tax liabilities.
What are the priorities young people must consider?
It’s become tougher for young people to reach their long-term ambitions as prices have risen over the last few years, causing some to push back major life goals.
Major life goals will vary from person to person, but common ones include getting married, starting a family, buying a first home, investing, starting your own business, or building your retirement savings.
According to the U.S. Census Bureau, only 21% of 25- to 34-year-olds in 2024 had reached all four traditional adulthood milestones: living independently, working full-time, getting married, and having children.
How can a financial advisor help?
While these long-term goals can appear daunting, expert financial advice can be useful as it can provide a clear plan for reaching these milestones.
While there are things young people can focus on solo, such as creating a budget, building a good credit score, and establishing an emergency fund worth three to six months’ worth of expenses, there are areas an advisor can add value.
An advisor can be particularly useful in ensuring you use any tax allowances or reliefs, which can be helpful if you’re starting your own business or building your retirement savings.
If you’re planning to get married, buy a home, or start a family, a financial advisor can help find tax-efficient ways to save money and alleviate costs.
They can also help you plan for the future, so you can have a comfortable retirement when the time comes, or with estate planning, so that you can pass on your assets to loved ones.
There are other areas where a financial advisor can offer support, such as finding the right insurance policy to help protect you and your loved ones if the unexpected happens.
Various insurance policies include:
Investing and retirement planning are other areas where a professional financial advisor can add value. They can help you decide on a long-term strategy in line with your risk appetite and personalised goals, as well as help you reduce any fees or consolidate any pensions.
What to consider when seeking financial advice
Before you seek advice from a qualified financial advisor, it’s worth considering what you’re hoping to achieve.
For example:
- Do you have a financial goal you want to achieve? Is there a desired timeframe in mind to achieve this goal?
- Which area of your finances do you need help with? This could be short or long-term. You may need help with your taxes, buying a house, or creating a long-term retirement plan.
- Do you have an idea of what your retirement will look like?
- Are you keen to get on top of legacy and estate planning?
When you consult a financial advisor, your initial consultation is usually free, and they should be able to let you know any information about fees before you confirm if you want to proceed.
There are many benefits to seeking financial advice, as you’ll get personalised recommendations based on your unique circumstances and financial plans.
An advisor can help you navigate ever-changing financial policies and regulations, as well as save you time, money and stress.
Get expert financial advice
Navigating your finances and reaching your long-term goals can be tricky, regardless of your stage of life.
Unbiased can match you with a qualified financial advisor who can recommend the best course of action based on your unique circumstances.