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

On this episode of Financial Symmetry Mike and I 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 that you have, which are: do nothing, DIY, or hire a financial advisor. There are pros and cons with each of these options that we will 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. There’s the do-nothing approach, we also call this the ostrich approach. Bury your head in the sand and ignore it all. Another approach is the DIY method. This is a popular approach for those looking to save money, or who like to have total control of their finances. The third option is hiring a professional to help ensure that your money is being wisely invested. 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 that you can do yourself. There are many reasons that you may want to hire a financial professional. One of the most popular reasons is that it saves you time. If you have been managing your own money you know that there is quite a bit of time that goes into researching the myriad ways to invest your money. If you get a good advisor they will help you take advantage of opportunities you may not have seen. This frees up your time that you could be spending doing things that you enjoy more. There are more pros and some cons to hiring a financial advisor. Listen to this episode to hear both sides.

What kind of financial professional is right for you?

The financial industry isn’t very good at marketing the many different types of financial professionals that are out there. There are quite a few different types, each with different specialties. They range from stockbrokers, who typically only focus on the stock market, to wealth managers, who manage many aspects of life for those who can afford it. There are a few options that you can find in between these two extremes that fit the needs of more people. A financial advisor or planner can help you take a comprehensive approach to managing your finances as a whole. If you have been wondering what the differences are with the many different types of financial professionals you can listen to this episode to gain more clarity.

Ask these questions to avoid hiring the wrong financial professional

Maybe you are ready to take the plunge and hire 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 are 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 Episode 6 - Do I Really Need a Financial Plan? Blog post - Are financial advisors worth the fee? NAPFA Connect With Chad and Mike https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh@TeamFSINC Follow Financial Symmetry on Facebook Subscribe To This Podcast

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