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    Busting Myths About Seeking Financial Advice
    The Vault

    Busting Myths About Seeking Financial Advice

    June 2024

    You seek a medical professional when you need medical advice.

    When you need a haircut, you go to a professional hair stylist or barber.

    Then, why is it that so many people hesitate to (or altogether avoid) finding a professional financial advisor? They help clients with money-related things like financial planning and investment management, minimizing tax expenses, saving for future goals, and real estate and retirement planning.

    Misconceptions abound about hiring a financial advisor. We're here to bust those. Let's discuss a few of them.

    Myth: Financial planning is too costly for what you get from it.

    Truth: Financial advice costs money, but consider all the education, testing, years of experience, and ongoing professional development behind that advice. They have the expertise and accounting tools to handle your finances better.

    Accounting and finance professionals continue to study, learn, and keep up with the newest research, legislation, and trends so you don't have to. You pay for this value when you enlist their help.

    Most people profit with the assistance of a financial planner. Here's some evidence: the Vanguard investment group ran a study on investment advising alone. That study found that those with an advisor earned 3% more on their investments.

    Just imagine what a holistic financial advisor can do with your entire wealth. They'll help you find ways to decrease expenses and create, save, and safeguard wealth.

    Regarding fees, different planners price their services in various ways. Some charge according to a percentage of the assets they manage for you. Typically, they'll charge around 1% per year. Usually, it comes directly from your investment accounts–you don't even miss it.

    Others charge a flat fee based on what they do for you. Pricing varies, but rest assured, there is a financial advisor to fit you and your situation. Don't let fear keep you from financial greatness.

    Myth: It’s only for wealthy people.

    Truth: Seeking out wise advice for investing, saving, and avoiding excess expenses is not only for the wealthy. It's for everyone.

    Many financial advisors of the past set up a model catering to the wealthy with their minimum requirements. However, the industry is reinventing itself and taking on a more flexible approach to serving various clients who may not have much money–yet.

    Search until you find the right one who gets you. Enlisting a financial advisor's help at a point in time when you don't have a lot of wealth might be the perfect starting point.

    Myth: I only need a financial planner if I have a big money-making goal.

    Truth: Everyone can use financial advice to make their money work smarter for them instead of working harder for the money. You don’t need to run a multi-million dollar business to benefit from a money expert.

    Myth: Only people in financial trouble need a financial advisor.

    Truth: Financial advisors can coach you through hardships, like debt, filing for bankruptcy, and IRS tax audits. However, they do more than help you put the financial band aid on your proverbial monetary wounds when you utilize them before you come into money troubles. They can help you avoid financial pitfalls altogether.

    Myth: I don’t have time to add one more thing to my life.

    Truth: Everyone needs to make the time to compare their expenses to what they get paid. This is called budgeting. If you knowingly or unknowingly spend more than you make, you eventually won't be able to pay for necessities.

    It's like running into a wall. One day, the loaners will stop loaning, and you will be in deep debt. Not only can financial advisors keep your finances in good working order, but they can also save you time. They'll work with you to create the relationship that's most valuable to you. It could be a virtual one where you don't have to drive to and from their office regularly. Instead, you can chat virtually. They can manage your finances online. You can pass any other files or data back and forth through emails.

    Myth: I need to be smarter to understand accountants.

    Truth: We promise you can find an accountant or financial advisor who doesn't talk over your head, using accounting acronyms and jargon you need help understanding.

    If we start to talk to you like you're a seasoned accountant, take that as a compliment. You seem like someone we've been working with for years. Then, remind us that we need to explain it better, and we will.

    Also, you don't have to hire or stay with an advisor you clash with. Research CPA firms offering financial services until you find one that fits your style and personality. They'll get you and will communicate with you the way you need.

    Hire a Professional

    Trained professionals have the knowledge and experience you don't, and they do the job effectively and efficiently. Never hesitate to seek professional financial assistance to help your money work smarter.

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