Do I Really Need a Financial Advisor?, Ep #53

Do I Need a Financial Advisor?On this episode, we explore the question: Do you need a financial advisor? This can be a complicated question, and the answer isn’t the same for everyone. We weigh the three options you have, which are: do nothing, do it yourself, or hire a financial advisor. There are pros and cons with each of these options which we explore on this podcast episode. We will also clarify what types of financial advisors are out there and what questions you should ask them if you do choose to hire one. If you have been wondering whether the time is right for you to hire a financial advisor you will want to listen to this episode.

What are 3 options when it comes to managing your money?

There are 3 basic approaches when it comes to managing your finances.

  • Do-nothing approach – also known as the ostrich approach. Bury your head in the sand and ignore it all.
  • DIY method – This is a popular strategy for those looking to “save costs” or who like to have total control of their finances.
  • Hiring a professional – This option helps ensure your money is being wisely invested and you are more aware of missed opportunities.

There are pros and cons that come with each of these three options. You’ll want to listen to this episode if you have been wondering what your options are or if you have been thinking of changing the way you manage your money.

Here’s why you might regret not hiring a financial advisor

If you have been focused on the DIY method of financial planning then you may wonder why you should spend the money to hire someone that is doing something you can do yourself. A valid question. But, there are several valuable reasons that you may want to hire a financial professional. One of the most popular reasons is that it saves you time. If you’ve been managing your own money you know that there’s quite a bit of time that goes into researching the myriad of ways to invest. If you find a quality advisor, they will help you take advantage of opportunities you may not have seen. This frees up time that you could be spending doing things that you enjoy more. There are more pros and some cons to hiring a financial advisor. You’ll hear both sides in this episode.

What kind of financial professional is right for you?

The financial industry isn’t very good at differentiating the various types of financial professionals you have to choose from. There are quite a few different types, each with different specialties. They range from stockbrokers, who typically only focus on picking and selling investments, to wealth managers, who focus on exclusivity and managing assets for ultra high net worth families. There are a few options you can find in between these two extremes that are a good fit for most people. A financial advisor can help you take a comprehensive approach to managing your finances as a whole. This relationship enables you to pay for advice on tax planning, cash flow management and estate planning vs. just getting investment suggestions. If you have been wondering what the differences are with the many different types of financial professionals, this episode should provide more clarity.

Ask these questions to avoid hiring the wrong financial professional

Maybe you’re ready to begin a relationship with a financial advisor to help you manage your money. But how do you go about choosing someone to take care of your money? It is important to be armed with educated questions so that you can ensure that you’re making the right choice for you and your finances. These questions include: How long have they been in business? Is the person a CFP? How do they earn their money? We have more fantastic questions that you probably haven’t thought of. Grab a pen and paper and listen to this episode to hear all the questions you should be asking your future advisor.

Outline of This Episode

  • [0:27] Do I really need a financial advisor?
  • [3:16] Things to focus on when planning your finances
  • [4:02] What are the 3 options when planning your finances?
  • [6:56] The pros and cons of the do nothing approach
  • [8:53] What are the pros and cons of the DIY approach?
  • [11:33] What are the pros and cons of hiring a financial advisor?
  • [15:13] What are the different types of financial advisors?
  • [21:30] Questions to ask a financial advisor
  • [25:22] Who should not seek the help of a financial advisor?

Resources Mentioned

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