Common Misconceptions about Financial Professionals

 

#1: Financial planning is only for the wealthy 

This common misconception is not true for a few reasons. Financial Planning is for everybody. No matter how much money you make, having a financial plan will help your future. Advisors often have a wide range of clients with varying levels of income. Advisors have different fee structures including percentage of assets, per- transaction, and fee based/ fee only. These different fee structures can help you pick the right advisor to form a relationship with and build a financial plan.  

#2: I don’t need a financial advisor; I can do it myself 

While this may be true for some people, it doesn’t apply to all. Even if you have your finances under control and are happy with the performance of your investments, having a second set of eyes to look over your decisions is never a bad idea. Financial advisors will give you helpful insight on what you could change or keep within your financial plan. 

#3: Once I have a plan, I don’t need to do anything 

This notion is false because financial planning is an ongoing commitment towards your future success. There is no one-time plan that will take care of your finances for the rest of your life. Much like a budget, a financial plan changes often and needs to be maintained regularly. 

#4: Financial advisors only recommend investments that benefit them 

A good financial advisor has your best interest in mind. They create plans that make the most sense regarding your risk tolerance, goals and comfort. Licensed financial professionals have a fiduciary responsibility to put their clients’ interests ahead of their own. These professionals are legally and ethically bound to make the right decisions for each of their clients. 

#5: I don’t make enough money to have a financial advisor 

Having a financial advisor does not mean you need to have lots of money. A financial advisor will help you find the best ways to use your money and stay on top of your finances, while taking steps towards your future goals. 

#6: I’m too young to have a financial plan 

This misconception is false because for many financial planning instruments, the longer you are involved, the more money you will accumulate. While younger people tend to make less money than those that are further into their careers, compound interest and time are in their favor. With relatively small investments into investment vehicles such as IRAs, the earlier you start, the more money you will end up with at retirement. 

#7: Financial counselors are only for last resort help 

This is not true. A financial counselor is not there just for help when you are in a dire situation. Counselors are available at all stages of your financial wellbeing. Many people have regular meetings with their financial counselor to review the good and the bad when it comes to their spending habits. 

 

The Financial Wellness Center offers financial counseling to all students, staff and alumni. We are happy to assist those who need help with their financial needs, goals, and wellness. Visiting the Financial Wellness Center bears no extra costs to you and everything within our office is confidential. 

 

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