Why I am against financial advisors

There are these people who exist called financial advisors who will help you determine what to do with your money.  Financial advisors are supposed to help you grow your money more quickly than if you just handled it without any help.  Obviously, financial advisors are not going to work for free, so you are going to need to pay them.  So, why am I against financial advisors?

Financial advisors are an additional expense

First of all, if I was a financial advisor, I would tell you not to use my services because you could better utilize that money elsewhere.  Many financial advisors take roughly 1% per year, which can end up being a lot.  For every $100,000, you are paying $1,000 per year.  In ten years, you would end up paying them $10,000 if your investment was around $100,000.  I would assume it would go up and your rate would also increase.  In my opinion, the cost is too high and the funds would be better invested elsewhere.

You should understand where your money is going

When it comes to your life, nobody should care more about it than you.  Similarly, you should better understand your money situation than anyone else.  It will require you to put effort into the various strategies you can take, but can easily be found on the internet.  For example, Investopedia is a very good website that has a lot of information to help better inform you on ‘everything you need to know about investing’.  The more you know, the better you will do or at least in theory this is true.

A financial advisor does not know your goals

One of the first questions a financial advisor will ask you is, what are your financial goals?  You would then need to tell them what your goals are.  They will then try to create a plan to get you to your goal.  If you are able to research the different strategies yourself as mentioned in my last point, then why would you need a financial advisor?  The key is, don’t be lazy and manage your own investments.  If your goal is to pay off all your debt and retire by 55, then you need to layout how you can do this.  You can find good advice from many resources available to you and use your money as best as you can.

These are just a few thoughts I have on financial advisors.  Sorry if you are a financial advisor, but if you are- I’d like to hear what your thoughts are.

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