Myths About Working with a Financial Advisor
A financial advisor can be a valuable resource on your life path. But there are many misconceptions about what working with one involves. In this article, we will debunk five myths about working with a financial advisor.
1. Only Extremely Wealthy People Need a Financial Advisor
Some financial advisors have account minimums and will not accept new clients with portfolios below that amount. But that is not true of all advisors. You will need to find one that fits your needs. Everyone can benefit from the guidance of a financial advisor. No matter how much you have, engaging with one will help you to increase your wealth.
2. Their Fees Are Way Too High
As with any industry, there is a wide variety of price ranges and fee schedules for financial advisor services. When you are looking for an advisor, there are typically two types of fee schedules you can choose from. The first is a fee per service basis. This means the advisor will charge you a set fee depending on the type of services engaged for. The second is an upfront fee with an ongoing subscription. This allows you to set up your main service with the advisor and will give you access to various follow-up services. Remember, when you are looking for an advisor, their expertise will be worth more than the fees they charge.
3. Their Only Goal is to Sell Me Products They Will Make a Commission From
Today, most advisors are fee-only fiduciary advisors. This means they do not make their money from commissions, instead, they make it from fees based on the services you are provided with. For many, this helps them to feel comfortable knowing that their financial advisor is obligated to work in their best interest.
4. My Situation is Too Simple to Need a Financial Advisor
When it comes to finances, there is no “one size fits all” success story. Having a simple situation now does not mean that you should not seek help to plan for the future. A financial advisor can help you to make better decisions now to increase your value later on.
5. I Can DIY My Own Financial Planning
It is important to remember that most financial advisors have special education and training requirements they must meet. They also have experience and access to tools, apps, and information sources that the general public does not. Due to this, their services can help you to make significant positive changes towards you reaching your financial planning goals.
Debunking Myths About Working with a Financial Advisor
Hopefully debunking these about working with a financial advisor will help you feel more comfortable as you start on your search for one.
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