Basics     Money Myths

“Only rich people need a financial advisor.”

POSTED ON AUGUST 05, 2022    

The myth

Getting someone to help you isn’t usually considered necessary unless you have a lot of money to manage. The comparatively small gains and losses aren’t seen as being worth the expense and effort of finding a financial advisor


That’s why many people believe that only rich people need a financial advisor.


The reality

There’s a lot of pride to be taken in learning how to handle money on your own. This often extends to investments, especially if you’ve had success in getting your money to grow.


However, there will be times that you’ll need more knowledge and experience than what you already have. That’s when having a financial advisor will come in handy.


While it can depend on your specific needs, the role of such professionals is usually to help you fix your finances from start to finish. This covers learning your financial health, creating a plan to help you achieve your goals, recommending investment products, shifting from one asset to another based on market conditions, and doing regular monitoring.


Of course, educating you will play a big role in all these steps. The advisor will help you understand what you are seeing and what he or she is recommending, so that you can make the right decisions.


This all means that the advantages of having a financial advisor aren’t limited to the people you would consider rich. In fact, even people who are struggling with their money could be helped by getting an advisor who could help them figure out the best way forward.


The verdict: False.

While rich people could be helped by having a financial advisor, the same is true for those who don’t yet have a lot of money. Their goals will probably be very different, but a good advisor may be able to help them achieve success.


While you might still reach your goal without any help, going through a financial advisor can increase your changes of having a good ending.


If you decide to hire one, going to a reputable financial institution is a good start. Most of these organizations offer advisory services, and will be glad to provide the assistance that you’re looking for.

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