The importance of seeking financial advice early

Most Americans believe that to gain long-term financial security, seeking professional financial advice early between the ages of 25 and 39 is "highly important" or "critical." This is one of the findings from Northwestern Mutual's 2025 Planning & Progress Study, which explores Americans' attitudes, behaviors, and perspectives on issues that impact their long-term financial security.

So, why is it important to seek advice early in life? According to James Munder, wealth management advisor at Northwestern Mutual’s Munder Financial, Gen Z and millennials are navigating a vastly different world, compared to their parents. The costs of attending college, buying a home, and raising a family have all increased, resulting in a smaller margin for mistakes among young people. “This situation creates financial stress, and gaining knowledge and understanding is the best way to address uncertainty,” Munder said. “Consulting a financial expert can help alleviate their financial worries and guide them toward enhanced financial stability.”

Why are younger consumers seeking guidance?

Many individuals in Gen Z have ambitious plans to retire earlier and are acting on these plans by beginning their retirement savings 15 years earlier than Baby Boomers did, said Munder, in explaining the decision of younger adults to seek financial guidance. “They’re also being exposed to the financial world in ways that previous generations weren’t. Platforms like FinTok – the financial advice side of TikTok – along with trends such as meme stocks and cryptocurrencies, have sparked their interest, providing financial advisors with opportunities to discuss more reliable investment and wealth management strategies.”

Additionally, Munder said, many companies have automated retirement savings programs, encouraging young people to start saving earlier and more consistently. Some younger Americans are also more interested in socially responsible and sustainable investing. “Financial advisors can guide them in aligning their investment strategies with their values, making financial planning more meaningful and personalized,” he added.

The impact of receiving advice early

There are several benefits to receiving professional financial advice early. For example, Munder said, starting early makes it significantly easier to accumulate long-term wealth because of compound interest. For instance, he said, someone who invested $100,000 in the S&P 500 in 2010 would have nearly $700,000 by the end of 2024. “This really showcases the substantial wealth that can be built by investing early and sticking with it.”

It’s important to remember, though, that financial security involves more than just growing wealth; it's also about protecting it, Munder added.

“Just like in a game of football, having a strong offense and defense will increase your chance of success. So, what does that defense look like in the financial world? Purchasing insurance earlier in life, for instance, can result in better rates because younger individuals are generally healthier. It's crucial to consider that unexpected events, like a long-term illness, injury, or worse, could occur at any time. Having life and disability insurance can help lay the groundwork for financial stability in the future.”

Additionally, a financial advisor can help millennials and Gen Z uncover potential blind spots and develop a comprehensive plan that can help serve as a roadmap to guide someone towards lifelong financial security. “Early financial planning can empower individuals to achieve life goals. such as buying a home, starting a business, or funding education for their children. Moreover, professional advice can help them better manage debt and optimize their tax situations, potentially leading to more effective wealth accumulation and preservation,” Munder said.

Challenges in advising younger consumers

Financial professionals sometimes face obstacles when offering financial advice to younger Americans. As Munder explained, many young adults are unaware of the affordability of insurance products when purchased earlier in life. Additionally, some don't realize that they don't need substantial wealth to consult a financial advisor. As an advisor with many young professionals and young families as clients, the key is to first establish a relationship, Munder said.

“Get to know your potential clients, ask insightful questions, understand their aspirations and concerns, and then discuss strategies to help them enjoy the present while planning for the future. Educating younger clients about the long-term benefits of financial planning and demystifying financial jargon can also make these services more appealing and accessible,” he said.

Meanwhile, according to the survey, adults said they trust financial advisors more than any other source for financial advice by a wide margin. For example, one-third of Americans trust financial advisors the most – nearly double the #2 source of advice (family members) and triple the #3 source (spouse/partner). Gen Z stands out slightly as the only generation to identify family members as the most trusted source of financial advice, followed closely by financial advisors.

The 2025 Planning & Progress Study was conducted by The Harris Poll on behalf of Northwestern Mutual among 4,626 U.S. adults aged 18 or older. The survey was conducted online between January 2 and January 19, 2025.

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