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Myths About Working with a Financial Professional

Myths About Working with a Financial Professional

Mar 2021

An employer-provided financial professional can help you plan for a successful retirement and navigate a wide array of financial decisions and challenges. Unfortunately, many people fail to take advantage of this valuable resource because they believe one of the following myths:


1. Financial advisors are only for the rich. You could actually make the opposite case — a financial advisor is even more important for those who aren’t independently wealthy. Good financial advice can make the difference between retiring comfortably on time and remaining in the workforce for years longer.


2. Nobody can “beat the market,” so why bother? While returns are never guaranteed, there are many reasons to work with a financial advisor beyond selecting investments. They can help you create a budget, determine how much house you can afford, plan for your children’s college education and help you manage debt.


3. I’ll lose control of my money. You will always maintain control of your investment funds while working with your employer-provided financial advisor. Their role is simply to explain and give advice, but you’ll always have the final say regarding all financial decisions.


4. They’ll make me feel embarrassed about my spending. A good financial advisor helps their clients make better decisions through education and support — not by judging or embarrassing. They should never make you feel bad about any lack of investing experience or ongoing financial challenges.


5. I’m in a target date fund (TDF), so I don’t need advice. Target date funds adjust risk according to your planned retirement timeline, thereby automating a certain amount of decision-making. However, you may still want to discuss your contribution levels to the TDF as well as a host of other issues, such as the ones already mentioned. Your personal finances comprise more than just your retirement account, and your adviser can be helpful in many different areas.


6. I won’t understand what they tell me. Your advisor can explain financial concepts and investment options in a way that matches your level of understanding and experience. If you don’t understand something, ask for an example. You may also receive written materials or videos that you can read or view on your own. In short, it’s their job to explain things to you in a way that you can understand — no matter your level of expertise.


7. They’ll pressure me to put my money in risky investments. You’ll always have final say over how to invest your money. An advisor should conduct an investment risk assessment to help gauge your personal risk tolerance and make recommendations that are appropriate to the level of risk you’re comfortable with.


Don’t believe any of these myths and potentially miss out on a valuable and useful employer benefit. Schedule a meeting with your financial advisor today to discuss retirement planning and any other financial goals you have.

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