Financial planning by yourself or through your financial advisor

Contacting a financial counselor is often the first step in planning for one’s financial future today. This begs the question, is it really necessary to have a financial advisor? Should I see a financial expert or handle this on my own? Is it true that hiring a financial advisor can help you out? Seeking the assistance of a financial advisor makes a lot of sense if you’re considering specialized assistance, which you should. In this piece, I will address the seven most common objections to using a financial advisor to help with your financial planning and explain why you should reconsider your stance.

1. Financial planning is not rocket science

That’s the general consensus, at least. Risk and return are the only two things that matter when it comes to financial products, which is why financial planning is so focused on them. People should be able to handle the procedure on their own because it involves nothing as difficult as atoms and molecules. The vast majority of those who hold that view are mistaken. Financial planning is more about the self-discipline and method than it is about any one area of complexity. Planning your finances requires sifting through mounds of information, considering a wide range of options, and remaining steadfastly committed to your long-term strategy. You should rely on your financial advisor’s persuasive skills for that. No matter how hard you try, you won’t be able to force yourself to adopt good financial planning habits on your own.

2. There is enough wisdom floating around on the net and on TV

Financial planning advice can be found on a wide variety of television shows and online resources. Don’t kid yourself, that still isn’t enough. These are broad, introductory recommendations. Your financial advisor should provide you with a tailored solution that meets your specific needs. After all, we all have different requirements, thus the answers must be tailored to our own circumstances. A competent financial advisor would be most suited for such a task.

3. I know that I need to get more into debt as I grow older

Everyone knows that the standard formula for determining the optimal equity/debt ratio is (100-age). Therefore, if you’re 40 years old, you should invest 60% of your money in stocks, but if you’re 60 years old, you should invest only 40%. However, this is merely a rule of thumb, and there is no actual evidence to support it. The optimal debt-equity ratio depends on a number of variables, such as your risk tolerance, your goals for wealth growth, the rates of return on equity and debt, and so on. You can’t expect any results by using a cookie-cutter approach. Your debt-to-equity ratio should be structured according to your specific circumstances and the reality of the market. A professional counselor is the ideal choice for this kind of demanding and creative work.

4. Fees payable to the advisor is an additional cost

Financial advisors do charge fees, but there are two ways to look at it. To begin, it does cost money to contact a professional such as a doctor, engineer, or lawyer. Then there’s no reason to feel guilty about shelling out this sum to your financial planner. The top solutions on the market require financial investment in the form of knowledge. Second, working with a financial advisor is beneficial since you, rather than the principal who is creating the goods, are the focal point of the solution. That’s a big plus for you. We are talking about decades, if not centuries, of saving for your future happiness. What you’ll pay your advisor is negligible compared to the magnitude of the benefits you’ll receive.

5. My auditor tells me which policies to buy and which mutual funds to buy..

You should try to avoid that. An auditor can help you with anything from filing your tax forms and auditing your books to handling your direct and indirect tax payments and refunds. Your auditor’s area of expertise is precisely that. Keep in mind that financial advisory is a niche field, so you’ll need to ask the correct questions to the proper person if you want accurate answers. A competent financial advisor is the only person who can handle your genuine long-term goals and help you formulate a strategy to achieve them.

6. I do not have the time for such a long process

The stability of your family’s finances and your ability to provide for your family’s needs in the future are, quite simply, of paramount importance. The procedure is time-consuming, demanding, and requires self-control. But it is the only way you can hope to achieve your long-term monetary objectives. You’ll need more than simply product expertise and a willingness to take risks to reach your objectives. Discipline and strictness play a far larger role. That is the value added by a financial counselor. If you want a safe and wealthy future for yourself and your loved ones, you’ll have to go through the laborious process of financial planning.

7. I know my financial needs and my financial health the best

You certainly do, but your financial planner is the one who will assist you in translating those aspirations into manageable budgetary objectives. You are well-aware of your financial requirements, but you might be unaware of how the power of compounding might assist you in meeting those need. First and foremost, while considering your own financial situation and objectives, your personal biases and preferences may enter the picture. The financial advisor is a third party who is not emotionally invested in the outcome.

In conclusion, it’s best not to overthink and overwork yourself. It’s in your best interest to hire a financial planner.