Nearly three quarters (71 %) of Americans say some aspect of talking to a financial advisor scares them according to a survey conducted by Harris Poll.
The reasons varied but cost was one of the major factors.
- 49% said that cost was the top concern. They were scared that talking to a financial advisor will “end up costing me a lot of money,” according to the poll.
- 47% said they were hesitant to trust a financial advisor with their personal financial information.
- 41% said they were concerned that a financial advisor would not be able to help them with their finances.
- Millennials were significantly more concerned about talking to investment professionals than people 45 or older.
- Nearly four in ten people (38%) avoided taking to a professional advisor because they feared that advisors would give them bad news about their finances.
Here’s the reality. A Registered Investment Advisor (RIA) can actually save people money by helping them make intelligent investment decisions. If that person is also a CFP®, they should be able to provide planning services that span the spectrum from advice on investing, retirement, and insurance, to tax and estate planning. Most advisors simply charge you based on the amount of assets that they manage, and provide all the other services as part of that fee!
If an RIA is going to provide investment guidance, they need to have a complete picture of the client’s financial situation. Just as a physician gives his patients a physical, an investment professional provides his clients with periodic financial physicals.
Finally, professional advisors don’t just dole out the bad news that people fear. If a client comes to us after having made some bad financial decisions, we often help them create a roadmap to help get back on track and headed towards achieving their goal. Most advisors will provide a free introductory consultation to see if they can help.