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
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
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
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.