As a native midwesterner, I have a natural aversion to hiring somebody to do something for me that I could do myself. For decades, my DIY approach to life worked for me — until it didn’t.
Over the years, my career has grown, my family has grown, and my responsibilities have grown. The one that hasn’t grown? My time. This sobering reality first hit me in my mid-thirties and became woefully unavoidable in my early forties. The truth: I can’t do it all. And honestly? Other people are so much better at some of this stuff than I am.
Financial Advisor for Young Adults: Starting Early Creates Opportunity
I’ve worked with numerous clients over the years who also take a DIY approach to their financial planning in their 30s and 40s. Most people wait until their mid-fifties to hire a financial advisor. Unfortunately, this can prove a costly mistake that leaves many opportunities on the table and significantly impacts the quality of retirement.
Financial planning is a lot like working out: it’s often harder to get in shape later in life than if you had just started putting in place the proper practices when your metabolism was still high. The earlier you start leveraging a strategic financial plan with professional guidance, the more opportunities you have to allow compounding to work in your favor. Most importantly, the earlier you hire a financial advisor, the more opportunities you have to course correct as your life progresses.
Most self-made millionaires didn’t achieve their success as a result of some grand windfall—it was the steady progress and having a plan. However, coming up with a plan is the last thing most busy professionals think about, as they’re just trying to get through the week. That’s why, in military terms, you need a professional advisor “watching your six.”
Why More High-Earner Financial Advice is Essential Now
Complex Compensation Structures
Today’s high-earning young adults face increasingly complex compensation packages. Beyond base salaries, you’re dealing with RSUs, bonuses, deferred compensation, and various benefit options that require strategic coordination and planning. Without proper guidance, you might leave money on the table.
Strategic Surplus Management
One of the first principles of wealth building is paying yourself first, and you’re probably already doing that through your 401(k). Still, I can’t tell you how many times I see young professionals with hundreds of thousands of dollars sitting in the bank because they haven’t taken the time to fully research what to do with it. Usually, more is lost from indecision than a wrong decision. Without a strategic plan for your surplus income, that money has a way of evaporating through lifestyle inflation and miscellaneous spending.
Virginia Financial Planning Help: Beyond Investment Management
In a high-tax region like Northern Virginia, fiduciary financial planner services extend far beyond simply picking investments. They should also examine opportunities you might be overlooking, consider the optimal tax diversification mix for your unique situation versus relying on generic rules of thumb, and plan over four decades, not just four quarters.
Additionally, a financial advisor for young adults should offer services that include comprehensive estate planning, strategic credit management, and determining how much you can actually spend while still building the wealth you need to achieve your goals. It’s not just about building wealth for tomorrow—it’s also about building enough wealth to do the things you want while not over saving and underliving.
Virginia Financial Planning Help: Your Vetting Checklist
Not sure how to evaluate potential advisors? Here are some essential considerations to help you distinguish between qualified professionals and those who are merely skilled at sales. Think of this as your due diligence roadmap.
Fiduciary Standards and Credentials
Look for a CFP® professional vs. someone with solely a broker license or an insurance license. As a CFP®, I must act as a fiduciary at all times; however, many people use the term fiduciary loosely. There are multiple levels of fiduciary responsibility. Look for someone with an investment advisor representative license or CFP® designation for the highest standards.
Fee-Only Advisor Benefits and Transparency
Understanding compensation is crucial. Many advisors call themselves fee-only without understanding what that means. If they’re with an organization that has any compensation other than direct client fees, they’re actually violating the use of that term. The majority of advisors have a dual registration and are “fee- based”, as they hold both broker and investment advisor licenses.
Capacity and Specialization
Look for advisors who specialize in high-earner financial advice and maintain reasonable client loads—typically 75 to 100 clients per advisor, with a robust support team. You want an advisor who knows you well, is responsive, and uses systems effectively.
Tax Integration Strategy
In a high-tax region like Northern Virginia, ask how they integrate tax planning. Look for advisors who examine opportunities you might be leaving on the table and think through your individual tax diversification mix over the span of four decades, not four quarters—avoiding blind rules of thumb. Find someone willing to communicate with your tax professional so all your bases are covered from a tax perspective.
Process Over Credentials
While the CFP® designation is the gold standard, the financial services industry offers numerous designations and certifications. However, credentials alone don’t guarantee quality service or expertise. What matters most is an advisor’s planning process, their ability to understand your unique situation, and how they develop and implement strategies tailored to your specific goals and circumstances.
Technology and Collaboration Tools
If you’re tech-savvy, you want a tech-savvy advisor. Look for firms with secure portals, account aggregation capabilities, and modern collaboration tools. You don’t want to be teaching your advisor how to send documents securely or use basic technology.
Success Measurement
Ask how they’ll measure success. Clear KPIs should focus on savings rates, tax diversification progress, lifetime tax burden projections, and continuous progress toward your specific goals—not just investment performance.
Ongoing Review Process
Be wary of advisors pushing quarterly reviews—most busy professionals prefer less frequent, more meaningful check-ins. Look for annual or semi-annual review schedules with availability for additional meetings as needed based on life changes or requests.
Not sure how to score potential advisors?
Let’s walk through it together.
Red Flags to Avoid When Hiring a Financial Advisor for Young Adults
When selecting an advisor, it’s not enough to know what to look for—it’s also important to know what to avoid. Consider these warning signs can save you from costly when hiring a financial advisor for young adults:
Multiple Regulatory Disclosures
Check FINRA’s BrokerCheck and the SEC’s investment advisor database for any advisor you’re considering. Multiple disclosures or regulatory issues should raise immediate concerns about their professional conduct and client treatment.
Insurance-Only Licenses
Anyone who only holds an insurance license and calls themselves a financial advisor is a huge red flag. These individuals typically only sell annuities or insurance products and lack the broader training needed for comprehensive financial planning.
Product-First Approach
Someone who starts talking about specific products in your first meeting is concerning. Real financial planning starts with understanding your situation, goals, and needs—not with a predetermined product they want to sell you.
Inconsistent Responsiveness
Be wary of advisors who are super helpful initially but then become unresponsive. If they or their team don’t return phone calls in a timely manner after you become a client, this indicates poor service standards.
Performance Bragging
Anyone bragging about outsized investment performance should raise red flags. You have to wonder if this is actual performance, hypothetical returns, or cherry-picked data that doesn’t reflect the full picture.
Complexity Over Clarity
Don’t confuse complexity with quality. The best advisors can explain their recommendations in relatively simple terms but should be able to go deeper when you want more detail—and many can’t. If they can’t explain their strategy clearly, they may not understand it themselves.
Ready to Take Control of Your Financial Future?
In Northern Virginia’s competitive landscape, high earners face unique challenges: complex compensation structures, significant tax implications, and the constant pressure of time constraints. Financial planning has evolved beyond simply managing investments or preparing for retirement. It’s about optimizing your entire financial strategy while building sustainable wealth.
At Good Life Financial Advisors of NOVA, we specialize in working with high-earning professionals who need comprehensive planning that goes beyond basic investment management. Our approach focuses on tax diversification, strategic surplus management, and helping you avoid both the trap of oversaving and the risk of leaving money on the table.
Ready to explore how our financial planning approach can support your goals and lifestyle vision?
Schedule a consultation with an advisor today!
We’ll have a short conversation to see if we’re a good fit for each other.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
