4 Common Reasons People Refuse to Work with a Financial Advisor, Ep #11

<p>Are there good reasons to NOT work with a financial advisor? Have people had poor experiences? Is it a complete lack of trust? People have shared their reasoning with me when I find out they’ve chosen to avoid working with a financial advisor. In this episode of Retirement Made Easy, I share what those 4 common reasons are—and whether or not I think they’re valid. </p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[0:21] 4 Reasons to NOT work with a financial advisor</li> <li>[2:27] Reason #1: Investment management is a hobby</li> <li>[5:55] Reason #2: The cost is a roadblock</li> <li>[7:39] Reason #3: A lack of trust</li> <li>[10:10] Reason #4: You don’t have the money</li> <li>[15:55] The cost of working with a financial advisor</li> </ul> <h2>Reason #1: It’s your hobby</h2> <p>This is the most popular reason I’ve heard when someone chooses not to work with a financial advisor. We are in the information age where you can research almost everything online, so some people prefer the DIY route. But remember—<em>information is NOT wisdom</em>. </p> <p>You need a firm idea of what you’re doing before you implement your plan. There are a lot of people who want to manage their own portfolio. If you enjoy it and succeed, that’s perfectly fine. It’s like a car enthusiast who likes to work on their own car as a hobby. It brings them fulfillment. If you’re one of those people, keep doing what you enjoy. </p> <h2>Reason #2: The cost is a roadblock</h2> <p>Some people aren’t comfortable with paying for the cost of a financial advisor, whether it be an advisory fee or an hourly fee. It’s similar to someone who wants to do their own taxes to save money. If they can do the same work on TurboTax or H&R Block online, they’ll do it to keep their expenses low. They’re also the type of person that invests in index funds, stocks, or bonds that don’t have annual fees associated with them. Many brokerage firms are low cost these days. But I believe paying a financial advisor for their advice, ongo