8 Myths About Financial Advisors You Need to Stop Believing

By Mark Yatros 

“I can’t afford a financial advisor.”

“Financial advisors only work with rich people.”

“You’re going to tell me how to spend my money and stop me from doing anything fun.” 

These are just a few myths I’ve heard about working with a financial advisor during my 30-plus-year career. But they are only that – myths.

Sadly, if you let any of these misconceptions keep you from working with my firm, Allegiant Wealth Strategies, or another financial advisor, you could miss out on a brighter financial future.

Here are 8 financial myths I often hear and the reality.

Myth #1: I don’t have much money to invest, so a financial advisor won’t work with me

Reality: Honesty, some financial advisors require you to have a minimum net worth before working with you. But that isn’t the case at Allegiant Wealth Strategies.

My colleagues and I believe that it’s essential for everyone to have access to sound financial guidance. We begin with a free consultation during which we talk about your current financial situation, your challenges, and your goals. From there, we determine how to work together so you have the best opportunities to achieve your goals.

Myth #2: An advisor can’t help me get out of debt

Reality: Paying off debt is an important consideration for many of our clients, and we understand how challenging it can be. While you will have to be the one to take action, we can help you create strategies to get you out of debt.

By evaluating your financial situation, we can assist in prioritizing your debts, identifying where you can adjust your spending habits, and creating a personalized plan that aligns with your financial goals.

Myth #3: DIY investing is just as good

Reality: While it’s true that do-it-yourself online investment platforms and apps have improved, they can’t offer the personalized guidance and comprehensive planning that you’ll receive from human advisors.

Professional financial advisors, like our team at Allegiant Wealth Strategies, can guide you with in-depth knowledge gathered from years of training and hands-on experience. We get to know you, understand your unique situation, risk tolerance, and values, and, with your input, create a plan to move you toward achieving your financial goals. Often, we serve as a counterpoint to the emotional decision-making that can lead DIY investors astray.

Myth #4: All financial advisors are the same

Reality: The financial advisory field is diverse, with professionals holding a wide range of certifications and qualifications.

For example, as a Certified Financial Planner™, I’ve been thoroughly trained in comprehensive financial planning. Also, as a Chartered Financial Consultant® (ChFC®), I’ve completed a comprehensive educational program through The American College of Financial Services and have deep knowledge of the breadth of financial planning, such as wealth, retirement, estate planning, insurance, taxes, and investment management.

Whatever advisor you select, it's essential to consider their qualifications, education, and experience to ensure they align with your unique financial needs and goals.

Myth #5: I can’t afford a financial advisor

Reality: We like to begin with new clients by meeting for a free, no-obligation consultation where we get to know one another. If we decide to work together, our fee structure is designed to be transparent and adaptable to your needs. Depending on the situation, we may be compensated by a flat fee, an hourly rate, or based on a percentage of assets under our management.

Myth #6: Financial advisors will take control of my money

Reality: You are always in charge of your money. My team and I are here to guide, not control, you or your money. We’ll work collaboratively with you, providing guidance and suggestions, but final decision-making will always be up to you.

Myth #7: Financial advisors only focus on short-term gains

Reality: Our goal is to develop long-term relationships with our clients. We look beyond investment management by creating with you a long-term financial strategy that can include whatever tactics you need, including retirement planning, tax optimization strategies, estate planning, and insurance coverage.

This long-term perspective may also involve setting up college savings accounts, advising on retirement accounts like 401(k)s or IRAs, planning for business succession, or structuring investments in a tax-efficient manner. By taking a holistic view of your financial situation, we can increase the odds that short-term market movements don’t derail your long-term financial stability and success.

Myth #8: Having a financial advisor guarantees financial success

Reality: There aren’t any guarantees in financial advising. We provide guidance and strategies derived from years of experience to help you reach your goals, but many factors influence financial outcomes, including market conditions and personal financial decisions.

Here’s one more reality for you

My colleagues and I at Allegiant Wealth Strategies work with people from all walks of life and various income levels. We help production line workers and CEOs set budgets, save, and invest. We assist business owners in navigating saving for retirement. We serve clients from their 20s to retirees in their 80s and every age in between.

We’re here to learn about your situation, goals, and aspirations. We’ll pursue your goals as if they were ours and put your needs above ours. We’re here for you.

My team and I are happy to meet with you for a free consultation. Please contact us here or call (269) 218-2100.

This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to ensure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer.

Allegiant Wealth Strategies offers securities and advisory services through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Allegiant Wealth Strategies has offices in Battle Creek and Portage, Michigan, from which we serve Calhoun County, Kalamazoo County, and Kent County (Grand Rapids). The Allegiant Wealth Strategies team offers no-obligation financial planning consultations; call 269-218-2100 or contact us here.