What 5 Top Financial Advisors Wish They Knew as Young Investors

Some of the best pros weigh in on boosting skills, mentoring, and more

Fact checked by Jiwon Ma

Learning how to invest is not easy, but help from some of the best professionals can light the way ahead for you. We interviewed five independent financial advisors from the Investopedia 100 Top Financial Advisors list to share what they wish they had known as young investors. The candid advice they offer below is valuable for those starting out or those just wanting to change up their investing routine.

Key Takeaways

• Focus on building a strong educational foundation first.
• Successful financial advisors emphasize the importance of investing in your financial knowledge through education, which can come from many easy-to-find and often free resources that didn’t exist previously.
• Don’t hesitate to seek out guidance from experienced professionals. Finding the right mentor can help you avoid common pitfalls and speed up your growth in investing.
• Rather than fixating on the investments everyone is talking about, focus on finding those that align with your long-term goals, risk tolerance, and overall financial strategy.

1. Invest in Your Education First

The financial advisors we interviewed recommend that young investors spend money on their professional growth and financial education. Many young people jump straight into trading stocks or crypto without understanding fundamentals like compound interest or diversification.

“I’d rather a young investor spend $2,000 on a course to learn how to negotiate their salary and their first five years of working than put that $2,000 into a Roth IRA,” said Cody Garrett, CFP, a financial planner and educator at Measure Twice Financial. 

This doesn’t mean you need expensive courses or certifications. There are so many free and low-cost ways to learn about investing now, said Marguerita Cheng, CFP, CRPC, RICP, CSRIC, founder and CEO of Blue Ocean Global Wealth. She read as many personal finance books as she could to understand investing. Discovering she was passionate about helping others with it sealed the deal on her making it her life’s profession.

Besides books, countless financial education resources are available on the internet, such as podcasts, YouTube videos, blogs, and Facebook groups. Many of these virtual resources are free or inexpensive, and you’re bound to find an engaging resource.

“It’s not your grandpa’s financial content anymore,” said Benjamin Brandt, CFP, president and founder of Capital City Wealth Management. “It’s actually entertaining and you might watch it even if you’re not hyper-interested in finance. There’s just an embarrassment of riches when it comes to content.”

Here are some that Brandt and Garrett recommended: 

• “Stacking Benjamins” podcast with Joe Saul-Sehy and Josh Bannerman
• The ChooseFI podcast with Jonathan Mendonsa and Brad Barrett
• Graham Stephan’s YouTube channel focusing on personal finance basics

2. Find Mentors

Even as they suggest self-education as the right first move, the top financial advisors we spoke with said you should know you don’t have to figure everything out on your own. Whether it’s a knowledgeable family member, a financial advisor, or an experienced investor in your network, having someone to guide you can help you avoid common pitfalls and build confidence in your investment decisions.

This advice is good not just for investing but for your career, too.

“I think a lot of people are scared to seek out mentors,” said Thomas Kopelman, cofounder and lead financial planner at AllStreet Wealth. “Mentors don’t just fall into your life and take you under their wing. You have to go after and get the mentor, whether that’s adding value for them or picking them out and asking questions. You have to be the one willing to do the work.”

According to Garrett, you can start your search by casting a wide net for experienced professionals in their field and reaching out to them to start a conversation, noting specific aspects of their careers you would like to emulate. 

“I sent 100 direct messages to all the people that I highly respected within my industry,” Garrett said. “Only four out of the 100 responded, but those four became the most impactful mentors in my life.” 

According to Amy Irvine, CFP, EA, founder and CEO of Rooted Planning Group, attending conferences and networking opportunities can help you find experienced professionals who might be willing to mentor or advise you. For example, the National Association of Personal Financial Advisors’ Women’s Initiative has been a valuable resource that helped her connect with like-minded people and learn from their experiences.

This is valuable advice even if you’re not planning on becoming an investment professional. Cheng suggests joining investment clubs or online communities to learn from more experienced investors. These groups often share real-world experiences and strategies you won’t find in books.

You don’t need to follow a mentor’s every recommendation, she said, but a second, trustworthy opinion is precious, and this is a time when you should be open to the best suggestions you can get.

3. See the Bigger Picture: Looking Beyond Individual Investments

The advisors emphasized that successful investing isn’t just about picking stocks or timing the market. It’s about understanding how investments fit into your broader financial picture and life goals.

Brandt noted that each investor has a unique situation, and novice investors should be wary of heeding generalized advice. 

“Investments are a tool that helps people get to their goal, but they are not the goal itself,” Irvine said. By this, she means that beginner investors should focus on what they want from investing and be specific about it, such as buying a home or funding a comfortable retirement. Don’t just throw out a number and say you want a million dollars.

Many young investors in their 20s and 30s spend countless hours trying to pick the perfect stocks or time the market, Garrett notes, overlooking their most valuable asset: time itself. His advice? Use those early years to focus on career growth, skill development, and increasing your earning potential —actions that often have a more significant impact on long-term wealth than trying to find the perfect investment strategy.

Cheng adds another perspective on seeing the bigger picture: being prepared for each possible outcome. This broader view helps investors stay focused on long-term goals rather than getting caught up in short-term market movements. It also helps them make more balanced decisions about how much to invest, what risks to take, and when to adjust their strategy.

“With my clients, I take the time to tell them that risk is everywhere, but investing and financial planning is about making informed decisions and being risk aware,” she said. “Being risk aware makes me better prepared so that I can take advantage of opportunities when they are presented to me.”

How Can Newer Investors Know Whether a Financial Education Course Is Worth the Time or Money?

Check the instructor’s credentials and track record, looking for relevant certifications and practical experience. Read course reviews, particularly from people with similar finances and goals. Ensure the curriculum offers practical, actionable content, not just theory. Consider the format (online, in-person, self-paced) and whether it matches your learning style. Also, quality programs should provide clear learning outcomes and tools you can apply immediately.

Finally, be wary of any courses promising unrealistic returns or focusing solely on specific investment strategies without teaching the fundamentals.

How Can Newer Investors Align Their Investments with Their Personal Goals?

Start by putting your goals into three buckets: short-term (one to three years), medium-term (three to 10 years), and long-term (10-plus years). Each will have specific targets and funding needs. Consider your income and emergency fund needs when assessing risk tolerance. Generally, longer-term goals can handle more risk, while shorter-term goals require more conservative investments.

Review and rebalance regularly as your life circumstances change. This framework should remain flexible enough to adapt to major life events like a career change or starting a family.

What Strategies Do Financial Advisors Recommend for Salary Negotiations?

Start by researching industry salary ranges through resources like Glassdoor and the U.S. Bureau of Labor Statistics to understand your market value. Document your accomplishments with specific numbers and results. Consider the entire compensation package, including benefits and stock options. Time your negotiation strategically, such as during performance reviews or after a completing major project.

Remember that your starting salary can significantly impact lifetime earnings through compound growth, making early career negotiations crucial.

The Bottom Line

Looking back on their journeys, top financial advisors emphasize that success starts well before you make your first investment. Start by building your financial knowledge through accessible resources like books, podcasts, and online content. Don’t hesitate to seek out guidance from experienced investors or advisors who can help you avoid common pitfalls.

Most importantly, remember that smart investing isn’t about finding perfect investments. It’s about understanding how investing fits your broader financial goals and about giving your money time to grow. By following this guidance, you can build a stronger foundation for your financial future.