Attempting to do everything on your own is a popular trend. After all, there is nothing that you can’t learn if you search online or watch a YouTube video, right? Wrong. Sometimes the cost of attempting to do some things on your own could be tremendous. This is especially true when we are talking about something as important and as significant as your finances and financial situation. When there is a lot at stake, you don’t want to take any uncalculated risks, and it is wise to spend some time to find the best financial advisors NYC. In this article we will highlight the ten myths about financial advisors that you shouldn’t fall for:
You don’t need a financial advisor because you are not rich:
Financial planning is for everybody who would like to set financial goals, organize their financial tools and make a plan to reach their money goals. It is true that there are a lot of financial advisors who only work for wealthy clients but some of the best financial advisors NYC would offer their services to all clients, regardless of their net worth or financial situation.
2. You don’t need a financial advisor because your finances are simple:
The truth is that your finances might seem simple to you because you don’t really understand how to manage them. For example, a lot of parents consider buying life insurance to protect their family in case one or both parents pass away. But they might forget to consider disability insurance. Disability insurance might be the only way a family could provide for itself if one or both of the parents are unable to work due to an injury or illness. A financial advisor will probably draw your attention to such financial solutions and tools that you might have overlooked or didn’t know exist.
3. Financial advisors help people with investment only:
This is another myth. If this is what your current financial advisor does, then you should probably hire someone else. A qualified financial advisor should be able to draw your attention to the big picture. He should help you with everything that is related to your financial situation and not just current and future investments. This means that he should provide you with a clear plan for retirement, insurance, real estate planning and maintaining your budget.
4. You don’t need to do anything once you hire a financial advisor:
This is another myth. A financial advisor will help you with setting things straight. But it is all in your hands. It is your life and your money goals so you should be ready to provide some input. Your financial advisor will not be able to control your earnings or your spendings if you don’t stick to the plan.
5. You should find a senior financial advisor if you want the best service:
This is not necessarily true. Some of the youngest financial advisors are among the best financial advisors NYC. They have probably spent and still spend a lot of time studying, monitoring and learning using new tools and techniques that might not have been available for the older generation.
6. All financial advisors are just interested in making money, without having my interest as a priority:
If you have trust issues then you should seek a financial advisor who is a fiduciary. This means that this particular financial advisor has met all the required criteria and qualifications to prove that they put the interest of their clients first. This financial advisor will always inform you of any conflict of interests or compensation plans that would affect you in the first place.
7. Advisors who receive commissions offer free services:
In the world of finances, there is nothing that sold for free. If the financial advisor is not taking money from you upfront, then you are probably paying their commission indirectly. Financial advisors will try to sell you compensation plans, insurance plans, and investment products. The companies that sell these products charge you in deferred sales charges or they markup the fees to compensate for what they pay to financial advisors.
8. Advisors who work for big companies are safer:
This is not true all the time. Remember that most of the big companies have been charged with fraud and have paid millions of dollars as fines. Your best option is to do a lot of research before choosing a financial advisor.
9. Advisors must disclose their credentials:
Most financial advising companies pay a lot of dollars each year so that they don’t have to disclose this kind of information. However, it is crucial to know who you are dealing with. While it is not mandatory to hold certain degrees to qualify as a financial advisor, it is wise to choose one who holds some accreditation before you allow them to gain access to your money.
10. Good financial advisors will have 100% customer satisfaction record:
Remember that it is a two ways street. Some of the very good financial advisors might not have met the requirements or expectations of a certain customer either because they weren’t doing what they had to do or because they had unrealistic expectations.
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