7 Myths About Financial Advisors
7 Myths About Financial Advisors
Wealth management is perhaps one of the most important and often overlooked adulthood responsibilities. Thus, working with a financial advisor can go a long way in helping you be successful with your money—for yourself, your family, and your business. If you’ve ever had reservations about seeking the assistance of a financial advisor, it’s likely because you’ve heard various myths or misconceptions along the way.
So, what should you really know about working with a financial advisor? Here are a few common myths about financial advisors, as well as a few reasons why working with an advisor can help you in your pursuit of financial independence.
Myth #1: I don’t need a financial advisor.
Though you may have a strong knowledge and keen ability to manage your finances, there’s no denying that the world of finances changes daily. A trained and qualified financial advisor can help you navigate your specific financial goals in ways that keep you protected and aware of the latest updates and changes in regulations, market fluctuations, and economic impacts. The truth is, if you have financial goals of any kind (including debt management, retirement allocations, home-buying, or college savings), then you’re a good candidate for financial planning.
Myth #2: Financial advisors aren’t worth the investment.
Like most any professional service provider, financial advisors charge for their services based on the time spent and extent of services rendered. So, it’s best to think of a financial advisor’s services as an investment instead of an expense. The reason is because the best financial planners will save you more money than what you pay them in fees. Financial advisors can help you improve your cash flow through responsible budgeting practices, while also reducing your tax liabilities, increasing your investment returns, or even helping you avoid costly financial mistakes.
Myth #3: All financial advisors are created equal.
While equality is usually a positive thing, not all financial advisors are necessarily equal when it comes to certifications, experience, and qualifications. Many financial planners are not CFP® professionals who have obtained specific work and education criteria, passed a rigorous exam, and met continuing education and ethical requirements. Financial advisors also have different educational backgrounds, financial planning designations, and fee structures. Choosing an advisor that has a wide range of credentials and specialties will only benefit you and your wealth management in the long run.
Myth #4: A financial advisor will talk in terms beyond my understanding.
Sure, the average person won’t always know all the financial jargon or industry terminology that financial advisors speak every day. However, the best financial advisor will embody the heart of a teacher and won’t begin giving you advice until he or she truly listens and understands you and your financial goals. Ultimately, financial advisors realize that their success comes from helping you achieve yours.
Myth #5: I need to have a certain amount of wealth or investment goals in order to work with a financial advisor.
Though some financial advisors have minimum wealth requirements for working with clients, others do not. Most advisors have a more varied and flexible approach to serving clients, so especially if you’re in a period of life where you don’t have a lot of money, it may be the best time to seek help. Being wealthy typically happens because you plan for it. Even more, while investing can play a key role in building your portfolio, a good financial advisor can help you with your overall money goals, such as budgeting, estate planning, and retirement planning, and more.
Myth #6: I will lose control of my finances.
In the end, a financial advisor doesn’t make the final call for you. They advise you, and you call the shots. The best financial advisors will give you recommendations based on investment knowledge, research, and economic trends, but it’s ultimately in your court to decide whether to proceed with the recommended advice.
Myth #7: I don’t need a financial advisor until later in life.
We can make many plans for our future, and life will always throw us a curveball. So, the earlier you start working with a financial advisor, the better your chances of reaching your goals. Especially for retirement and estate planning, it’s never too early to start making decisions and navigating your options. Having a plan early on gives you direction, and a financial advisor working alongside you can help give you the confidence you need in knowing you’re making good decisions.
Is It Time to Debunk the Myths Yourself?
Since money is typically a foundational part of our lives, there’s no better time than now to take the appropriate steps toward improving your financial life. Our advisors on the Dobyns Wealth Team are recognized among the nations’ top wealth advisors and are here to guide you toward financial solutions that can positively impact your quality of life. Contact us today to get started!
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