Almost everyone knows what a financial advisor is. Or at least, they think they do.
It’s someone who advises you on financial items, right?
While that’s not wrong, the truth is a little more complicated. To help set the record straight on what a financial advisor is (and isn’t), we thought we’d tackle some of the more common misconceptions we’ve encountered over the years.
All They Do is Tell You What You’re Doing Wrong
Some people are scared of financial advisors in the same way they’re scared of dentists. They worry that they’re going to walk in and the advisor is going to give them a lot of bad news, and the only way to fix things is through some very painful steps.
While a quality financial advisor will be honest with you, and the truth isn’t always easy to hear, their goal is not to make you feel bad. It’s to get you financially healthy. That means discussing your goals and presenting you with ways to attain them.
It’s not about what you’re doing wrong but what you’re capable of accomplishing.
It’s All About Investments
If you’re serious about your financial health, and you want to create a prosperous future for you and your loved ones, an investment portfolio is something you should build out. But that’s more of an end goal.
Before you reach that point, there are likely some other areas to improve, such as debt, assets, savings, retirement, etc.
Now, there are some professionals who operate under the title of “Investment Adviser”, and depending on their qualifications and training, they may only be equipped to help with investments. But a true financial advisor is more comprehensive, capable of working with your finances from the ground up.
Only Rich People Need One
This myth has weakened a little bit over the past decade or so, but it still remains planted in many minds. It seems like a logical thought: if you don’t have a lot of finances, why would you need someone to advise you on them?
The simple answer would be “so that you can have more finances in the future”.
Those with less money can see more immediate benefits from healthy financial practices. You’ll suddenly see your debt shrinking, your savings growing, and you feel more confident about your future.
Honestly, saying “only rich people need a financial advisor” is almost like saying “only someone with a lot of muscles needs a personal trainer”.
All Financial Advisors are the Same
You’ll see a lot of titles thrown around in the financial world, whether it’s “financial coach” or “wealth manager” something in that vein. But just because they operate as a financial advisor doesn’t mean they have the same qualifications.
At KB&P, all of our advisors have attained either CFP or ChFC certification, meaning we’re educated in the best financial practices. We don’t serve any larger corporations, and we are obligated to act in the best interests of our clients.
If you’re in need of a financial adviser in the Springfield, Ohio area, contact KB&P today, and see what a real finance team can do for you.