GMJ Financial

Last week I met with a prospect. During our conversations he made the statement that his mentors told him to “never hire a financial advisor”. While, of course, I might be slightly biased that everyone should have an advisor, I will say that this isn’t the first time I’ve encountered this sentiment.

After years in the industry, I think this sentiment is actually justified. Looking at massive events during our lifetime so far we’ve had the dotcom crash, the market crash of 08’, and even last year we saw a massive drop. People have every right to be tentative about the idea of hiring an advisor. The amount of horror stories I’ve encountered myself has absolutely impacted me personally, just as it has impacted others.

Just as with every decision, there are pro’s and con’s. I’d like to take some time to review a few points on the pro’s and con’s of hiring a professional.

Pro’s:
-Hiring a professional can save you time, so that you can stay focused on what you’re passionate about. A professional’s responsibility is to keep up with events and to help guide you through the process. Not to say this can’t be done by yourself, but it takes time. We only have 24 hours in a day, and how much do you want to put into research versus the things you want to do?

-Hiring a professional can help to brainstorm ideas. Even if you are very in tune with market cycles, there are a lot of areas outside the market that can impact your plan. A professional can help to guide you through options to help mitigate risk and more.

-Financial Advisors must carry Errors and Omissions insurance. Should there be an issue, these policies can help investors in terms of reconciliation.

-Financial Advisors have access to products that clients don’t have access to. This includes share classes and other products that clients can’t obtain by themselves.

-Financial Advisors usually have a network that can help to connect people to other professionals in different areas. Most advisors aren’t attorneys, accountants, or experts in every field. Advisors can also have access to special informational resources such as market research and specialist reports.

Cons:
-Financial Advisors cost money. While I don’t believe that this is necessarily a “con”, it is a matter of fact. We advisors are running a business and have to support ourselves as well. While I don’t believe cost should be an inhibiting factor, it is still the number one objection that I encounter.

-A particular advisor may not be a good fit. Advisors come in a variety of “flavors”. Some advisors like to focus solely on particular areas. It can be difficult to find a good advisor that suits your needs and your personality.

-Barriers of entry. One of the biggest objections that I encounter is when people say “I don’t have enough to start a financial plan” or “I can’t afford your services”. While this ties into the previous point, and I made my business to be inclusive of anyone that wants advice, it is true that other advisors may not look twice at an individual that has no assets or isn’t able to pay a large up front fee.

-Not all professionals are fiduciaries. Not all professionals put their best interests before yours. This may seem counter intuitive, but it is reality. How do you know that a professional will keep your best interests at heart? This comes through trust and building a relationship that will be symbiotic in nature.

-While I believe that everyone should have an advisor, the fact of the matter is that it’s not for everyone. Some people believe that they can do it themselves, or refuse to see the benefit. The only way you’ll find out for yourself is if you start asking questions and reach out.

By no means was this an extensive list, and if you have questions about pro’s and con’s please reach out. I’m more than happy to answer any questions that you may have. I built my business to be inclusive of anyone who has questions, and to have the financial representation that they deserve.

Managing your finance doesn't have to be frustrating. Getting in touch with the right person can show you how easy it is to take control of your future. Haven't started yet? Maybe want a second opinion? Reach out. I'm here to help.

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