Okay, I’ll admit this is a strange title coming from me, a financial advisor. But when you consider we offer our services to less than half the people we meet, I think it’s an important topic of discussion. Almost daily I explain to prospective clients why I don’t believe they are fit for us. I’m not playing hard to get. Rather, I think for some people working with a financial advisor make sense, But for many, it does not.
Here are the top 5 reasons why someone should never hire a financial advisor:
1. On a scale of 1 to 10, you rate yourself a 9 or 10 when it comes to financial peace of mind. Why would hire an advisor when you already have reached peace of mind?
2. You think the advisor has the ability to know in advance what markets are going to do. He doesn’t.
3. You like to check your portfolio every day. There’s nothing you can learn by looking at your net worth daily. You hire an advisor so you don’t have to check your values.
4. Trust doesn’t come easy. For good reason, a lot of people struggle to trust others. It doesn’t make you bad. It makes you who you are. In cases like this, it’s probably best you manage your own money.
5. You’re loyal to your portfolio. I see it every day. Someone has a large position in one company. To them that stock is like an old friend. He understands the value of diversification, but for some reason, he just can seem to part with his favorite stock. I saw it often with General Electric. Very sad.
Stay tuned. Tomorrow I will share with you the only reason I think someone should hire an advisor.
Regards,
Dan Cuprill, CFP®
Regards,
Dan Cuprill, CFP®