It’s entirely normal to be a little apprehensive about planning for your financial future. But, fears and misconceptions about investment and other aspects of wealth management can lead to poor decision-making and really hinder your quest for financial freedom.
We recently looked at three common myths about financial advisers that tend to hold people back from seeking professional guidance – the assumptions that only people with complex finances need an adviser, that all financial experts are just after clients’ money, and that working with an adviser inevitably means relinquishing control of your own funds.
But none of these beliefs are (necessarily) true. They also aren’t the only false ideas that individuals have about the value that a financial adviser can bring to the table. To help you make informed decisions that will yield long-term gains, we’ve highlighted three more major misconceptions that could be deterring you from seeking advice from the right kind of professional.
MORE MISGUIDED BELIEFS ABOUT FINANCIAL ADVISERS
1. Financial advisers only assist with investments
Maybe you’ve already made your own decisions about where to invest your money, so having a financial adviser onboard now feels a little redundant. But the truth is, a good adviser will do so much more for your wealth prospects than just oversee your investments. Financial experts adopt big picture-thinking to ensure that every aspect of your financial life has been considered and planned for – they should be able to assist with everything from budgeting and insurance solutions to retirement and estate planning. Similarly, financial advisers don’t only offer value in the initial stages of the planning process. Their contribution is typically active and ongoing, and if they’re doing a good job, they’ll consistently monitor and update your portfolios to ensure they continue to meet your needs at every life stage.
2. Working with a financial adviser is too costly for me right now
Yes, working with a wealth management professional does come with certain costs. But failing to plan for prosperity and long-term lifestyle security can be much more costly. If you’re concerned you don’t have the funds set aside to cover an adviser’s fees, then it’s possible you’re not managing your money quite as well as you could be – and that’s precisely where a wealth expert can help you. The role of a financial adviser is to help you to minimise unnecessary expenses (think exorbitant insurance premiums) and maximise wealth creation so that you can afford the things you want and need, and that includes their services.
3. An agent tied to a big financial house is always a safer choice than an independent financial adviser
While many individuals may find comfort in the fact that a tied agent is backed by a large, well-known institution, there are many unique advantages to working with an independent financial adviser. For one, private wealth managers are committed to developing a long-term partnership with investors, so they’re bound to make you a top priority and offer tailored advice that matches your unique needs. Similarly, independent advisers are not limited by the house they’re affiliated with, and so can draw on a wide range of products and providers to customise a financial solution that’s just right for you. Of course, large financial firms are a perfectly good option for many individuals, but if ongoing interactions and personalised attention is important to you, then an independent financial adviser is probably your safer choice.
Now that we’ve debunked a few common misconceptions about wealth management, do you see yourself benefiting from working with a reputable independent financial adviser who’s committed to helping you achieve your objectives? If so, connect with us. We specialise in tailor-making comprehensive investment and insurance solutions that’ll help you to protect your business and family wealth well into retirement.