Depending on the estimates you believe, perhaps 15-25% of the adult population work with some type of financial advisor. This includes those who work with brokers and other salespeople. Even fewer actually act upon the advice. The cost of this inaction – the consequences – highlight the true value of working with an advisor.
A Philosophy and Plan
Detrimental financial decisions and emotional investment choices are just two of the costs for many “do-it-yourself” investors. These are true costs and in one way or another, disrupt or curtail real life financial goals. The right strategy without any action produces no benefit. The right strategy with the “plug pulled” at the first bump in the road also provides no lasting value. Investors only benefit if they have both a philosophy/strategy and a plan for staying with that strategy for the long-term. The best way to achieve that end is with the help of an advisor.
Honest, Caring, Personalized
We often tell clients and prospects that we are in the education business. The financial world can be confusing and complex, and our role is to help make sense of that for our clients. We strive to help clients understand the importance of avoiding mistakes that erase wealth and instead, concentrate on proven strategies that build wealth.
The real value of independent, objective financial advice is mostly in saving well-intentioned investors from themselves. Investors need honest, caring and personalized advice to help guide them through the financial fog. Our role is to push back when clients want to abandon reason and discard their plans, whether out of fear or out of greed.
As an aside, the pressure to render popular, if ill-conceived advice is unremitting. The pundits and the product purveyors always stand at the ready with short-term “solutions” to tempt all but the most disciplined investors. We offer a contrast, a focus on long-term planning goals, not next month’s market.