According to PwC, nearly half of high-net-worth investors are planning to change wealth management providers in the next 12 to 24 months. But it’s not just about switching firms, it’s about recognizing the deeper issue: knowing when the advice you’re receiving no longer fits the complexity of your financial life. In other words, it’s about making the connection and understanding when it's the right time for a financial advisor.

Whether it’s navigating equity compensation or realizing your financial goals have outgrown your current plan, more people are discovering it’s not enough to just have an advisor—you need the right one. And for some, it’s a different kind of turning point: the moment they realize it might be time to seek professional financial guidance for the first time.

That's why we created this guide, which covers the following key topics:

• Times When Professional Financial Guidance Helps

• What Makes an Advisor Relationship Work for Your Wealth Goals

• FAQs: Your Questions About When it's the Right Time for a Financial Advisor

Here are key scenarios where expert guidance becomes particularly valuable. Let’s dive in.

Times When Professional Financial Guidance Helps

It’s Tax Season – And You Need A Year-Round Strategy

According to the National Financial Educators Council's research, Americans estimate that since 2017, they’ve lost approximately $1,500 annually due to financial illiteracy. However, for high earners, the stakes are significantly higher when it comes to tax optimization.

What does this look like? It's realizing you owe unexpected taxes because no one helped you plan ahead year-round. In contrast, working with the right advisor means having someone proactively coordinate your tax strategy, time decisions around your situation, and structure your approach for maximum efficiency.

Significant life changes may necessitate reassessing your financial roadmap to ensure it still aligns with new priorities and responsibilities. Marriage, the birth of a child, or preparing to pay for college present opportunities to secure your future financial well-being through proper planning.

Consequently, many high-earning professionals find that specialized tax guidance transforms their relationship with tax planning from reactive scrambling to confident year-round strategy.

You Are Going Through Life Changes and Other Major Financial Transitions

What does this look like? For instance, getting married and realizing you need to coordinate two financial lives, or having a child and suddenly needing to plan for education expenses and life insurance. These transitions often involve multiple financial domains that require coordinated expertise. Read more about specific life events in our guide.

Therefore, a financial advisor can provide invaluable guidance on strategies for saving, such as setting up education accounts like 529 college savings plans to help ensure future educational expenses are manageable.

You Are Planning for Your Financial Future

When planning for your future, a financial advisor can help you craft a robust financial strategy that aligns with your long-term goals. Research shows that professional financial advice can add up to 3% annually in returns through strategic planning and behavioral coaching, according to Vanguard's research.

What does this look like? For example, having someone help you navigate investment choices, retirement planning, estate management, and insurance options. Financial advisors can recognize growth opportunities and mitigate risks, preparing you for both predictable milestones and unexpected turns.

As a result, professional guidance often helps people manage their behavior during market volatility and stay focused on long-term objectives rather than making emotional decisions.

Now that we've seen when financial guidance becomes transformative, the next important question emerges: what actually makes these advisory relationships successful? Understanding these elements helps you evaluate whether your current advisor relationship is working or if it's time to consider a change.

Finding The Right Expertise for Your Situation

Quality matters when it comes to advisor credentials and specialization. For context, 86% of advisors on Datalign's platform appeared on the 2023 Barron's Top 100 RIA list, demonstrating the caliber of professionals available.

But what does finding the right expertise look like? Specifically, it's working with someone who understands your particular circumstances rather than getting one-size-fits-all recommendations. This might mean finding an advisor who specializes in areas relevant to your situation—whether that's succession planning, when to exercise stock options, planning for your Golden Parachute, retirement planning, estate management, tax strategies, or investment analysis.

Consequently, the right expertise match often means getting strategies tailored to your actual wealth level and goals:

Communication That Connects

According to recent surveys, YCharts' research involving nearly 800 clients found that communication frequency significantly impacts client confidence in their financial plans. Additionally, an advisor's communication style is a factor for retention and referrals among an overwhelming majority of clients.

What does effective communication look like? Specifically, it's getting proactive updates about your investments and financial strategy rather than having to always initiate contact. Moreover, it's receiving clear explanations rather than jargon-filled reports, and feeling like someone is actively engaged with your financial situation.

Therefore, the quality of communication often determines whether you feel confident about your financial future and satisfied with your advisory relationship.

Aligned Investment Philosophy and Approach

Research shows that 52.5% of people primarily seek help meeting financial goals, while 47.5% feel that investment evaluation is more valuable. This indicates that many consumers want goal-based planning services rather than investment-only advice.

What does philosophical alignment look like? For instance, it's having an advisor who asks about your actual goals—when you want to retire, how you feel about risk, what's important to you financially—rather than just showing you performance charts. Additionally, it's getting an approach that considers your personal situation and values.

As a result, when your advisor's expertise and philosophy align with your wealth goals, financial planning becomes a strategic partnership rather than a transactional service.

Finally, with a clear understanding of when financial guidance helps and what makes advisory relationships successful, it’s worth returning to the central question: when is the right time for a financial advisor? Here are answers to the most common concerns people have about finding and working with financial advisors.

Frequently Asked Questions About the Right Time for a Financial Advisor

What does a financial advisor actually do for clients? A financial advisor is a professional who assists individuals in managing their finances by offering expert advice on investment choices, insurance decisions, retirement planning, and other services. For a comprehensive breakdown of advisor services and specializations, check out our detailed guide on what financial advisors do.

Do I need a financial advisor? According to the National Financial Educators Council, the average American estimates that since 2017, they’ve lost approximately $1,500 annually due to a lack of personal finance knowledge. A professional can also help if you're navigating life transitions such as inheritance, divorce, or retirement planning. For more lessons from and for America’s wealthy, read our guide.

How does Datalign connect Americans with trusted advisors? Our technology analyzes your profile against our network of vetted advisors to connect you with one advisor whose expertise aligns with your specific needs. Once we identify a good fit, you'll have the opportunity to set up a call with your recommended advisor.

Why are so many people considering changing advisors now? PwC's research shows nearly half of high-net-worth investors plan to change providers in the next 12-24 months. The primary drivers include unmet needs around specialized services, communication gaps, and seeking advisors who better understand their evolving financial complexity.

The Aligned Perspective: The Right Time for a Financial Advisor

The research shows that many people are reconsidering their advisor relationships, but what does success actually look like? It's having confidence that someone truly understands your goals, relief from proactive communication tailored to your situation, and peace of mind from working with expertise that matches your situation. For more, read our guide on how to evaluate a financial advisor.

At Datalign, we've connected over $50 billion in assets with 13,000 trusted advisors using AI-powered technology. Our platform requires no secret handshake — just honest answers about your financial goals to connect you with the right advisory relationship.