3 Myths About Working With Financial Advisers That Could Cost You Money

Getting the right advice about money isn’t always easy. While the internet provides a convenient way to research individual retirement accounts, business savings strategies, and estate plans, turning financial strategies into financial realities can be time-consuming and exhausting. Although a growing number of Americans have realized the benefits of working with a dedicated financial adviser, many people are reluctant to let a stranger make decisions on their behalf.

If you’re seeking to take control of your finances but aren’t sure if obtaining an adviser is right for you, you may not realize how financial advisers help their clients reach their goals. Here are several of the most common myths about financial advisors. 

Debunking Myths About Financial Advisors

Myth #1: You’ll Save Money by Investing on Your Own

Arkansans take a lot of pride in being able to do their own work. However, finance can be a challenging field. Even if you’re an armchair investor or cryptocurrency enthusiast, you might still need some help.

Financial advisers are dedicated professionals who spend every day utilizing the latest technology to ensure their clients can stay on top of ever-changing laws and trends. While doing everything yourself could save you some money in the short-term, most people would likely benefit from the broad perspective an experienced financial adviser has to offer.

Benefits of a Financial Adviser

• Understands how Arkansas and the Internal Revenue Service tax capital gains
• Determines if the federal government is entitled to the profits you’ve made off trading Bitcoin or another digital currency
• Decides if you’re better off putting your savings in a traditional IRA or a Roth IRA
• Explains how to save for a child’s education while minimizing your own end-of-year tax obligations
• Establishes an estate plan that’s safe from probate, taxation, and other unexpected and unwanted surprises

Myth #2: You Can’t Trust Anyone Else With Your Money

It’s hard for many people to trust others with decisions about what to do with their hard-earned money. However, hiring a financial adviser doesn’t mean that you lose the rights to your wealth. Financial advisers, like other industry professionals, are “fiduciaries.” In other words, they have a legal obligation to only act in your best interest. Furthermore, when you entrust a financial adviser with a cash account or stock portfolio, they don’t just re-title it in their own name. Instead, they typically keep it with a custodian—such as a bank—in an account that’s registered in your name and accessible to you around the clock.

While you may worry about your money, you don’t have to be concerned about a financial adviser taking away your life’s work. When you schedule your first consultation with an Arkansas financial adviser, you’ll have the opportunity to discuss:

• Your current financial constraints 
• Your financial concerns, goals, and long-term aspirations
• Your risk tolerances

Myth #3: You Don’t Have Enough Money to Seek the Help of a Professional

People often believe that financial advising is something that only wealthy professionals can afford. Maybe that was once true; however, today’s technology means that everyone has access not only to the stock market but a diverse assortment of savings tools and strategies.

Everyone who earns an income, manages expenses, and hopes to have a happy, healthy, and fulfilling retirement needs to have a financial plan and a financial end-game.

Do You Need Help Meeting Your Money Goals?

Quraishi Law & Wealth is a community-oriented law firm that strives to make savings and investments accessible to everyone. If you want to learn how to manage your money better but aren’t sure where to start, our team of dedicated wealth professionals could help you make sense of your options, no matter your background, education, or income. Please send us a message online, or call us at 870-275-4304 to speak to a professional and schedule your initial consultation as soon as possible.