When it comes to managing your finances, you probably have some long-held beliefs about the best way to save and invest your wealth (as well as some ideas that are holding you back from making positive financial decisions). And some of these beliefs will centre around the role and purpose of a financial adviser.
While much of what you know about financial advisers might be true, you might also be avoiding working with a financial expert because you believe they are unnecessary for your wealth plan or that, like so many things in life, you can DIY your finances, or that you don’t have enough money to warrant professional financial help. The truth is quite the opposite. A reputable financial adviser (and we cover why we think independent financial advisers are the best choice here) can offer you expert guidance and help you manage your wealth so that you achieve your long-term financial goals.
Often people aren’t ready to take this crucial step towards financial prosperity because they have misconceptions about what it means to be and/or work with a financial adviser. In today’s post, we’re going to tackle three big myths that might be preventing you or someone you know from seeking professional financial help.
Misguided beliefs about financial advisers
1. Financial advisers are for people with complicated finances
You might believe that because you live a relatively straightforward life financially, you’re not extremely wealthy, or you do not have a wide range of assets to manage that you do not need the help of a financial adviser. However, in most cases, the opposite is true. Coming from a place of experience and expertise, a financial adviser can give you insight into your financial situation and highlight potential pitfalls that you might be even have been aware of. For example, many people with young children do have life insurance (and they believe this covers their dependants) but they don’t have disability cover so if they are suddenly unable to work, they might face a financial crisis. It is this kind of gap that a financial adviser can point out and offer solutions to over the course of your lifetime.
2. All financial advisers are the same and they are all after my money
This cynical view of the financial adviser can be a major stumbling block to finding the right adviser for your financial planning needs. It is true that, as in any industry, there are individuals who do not operate ethically or with best practices so it is best to work only with a reputable and accredited financial firm. In less ominous terms, it does bear remembering that not all financial planners are qualified, registered, or educated in the same way. Some planners are sales representative for large investment companies, others are members of an established financial house, while still others are independent financial advisers and fiduciaries, bound by legal and ethical guidelines to put their clients’ needs at the top of the priority list. Go for reputation, experience, and expertise.
3. Once I start working with a financial adviser, I won’t have a say in what happens to my money
The opposite is actually true. While you can decide how hands-on you want to be with your wealth on daily basis, your financial adviser is there to guide you in making financial decisions and in understanding your financial situation overall. A good financial adviser will look at your relationship as a partnership in which you both bring different expertise and knowledge to the table to create the best possible financial management plan for your needs. What a financial adviser can do is help you outline your financial goals, educate you about processes like investment management, and streamline your wealth management processes so that you get to achieve those goals in the long-term.
Looking to work with independent financial advisers who can help you structure a wealth management plan with your best interests at heart? Work with the experts – as independent financial advisers with over three decades of experience, the TRG team is able to create cover and investment portfolios based on your unique family and business needs, from insurance to investment.