some people pay tens of thousands of dollars a year on Financial Planning and investment advice
and others literally pay zero so which one is better well in my opinion no one needs a financial
advisor Yes you heard that right you don't need a financial advisor as long as you have three
things in place and you can execute on them the first one is knowledge you have to be interested
enough and willing enough to gain knowledge about investing best practices for cash flow management
strategies to minimize taxes and the best ways to create a legacy in acquiring knowledge takes
time number two you obviously have to be willing to invest some time in your finances technology
has made managing finances much easier but there is no such thing as autopilot financial planning
you must be willing to sacrifice some time that you'd rather be doing other things to learn about
personal finance execute your strategies and monitor your financial life for opportunities
and threats life is constantly changing and so is your financial plan the plan at 30 is going to
look much different than the one at 40 50 and 60. whether you invest the time to watch educational
videos read books or attend seminars you must be willing to gain some knowledge there are many
strategies out there to grow and preserve your wealth but which ones are best for you and your
situation you must invest the time to learn what's best for you and your family lastly you must have
the temperament fear and greed are powerful emotions and can Cloud your judgment and create
anxiety in times of market and personal stress significant financial decisions should never be
made when your emotions are heightened locking in significant losses by Panic selling during Covid
or the financial crisis or the tech rack it's set people back back years and even decades similarly
foregoing balanced investing to go all in tech stocks in 2021 like meta Shopify Amazon PayPal
many others might take a decade to recover from look it sucks I've seen people make catastrophic
decisions being too greedy or too fearful in order to be a successful investor and make sound
decisions you have to have a level head and keep an even Keel so as a financial advisor why would
I say that no one needs an advisor that seems odd well I studied finance and economics in college
I worked for a large Wall Street Investment Bank for a decade I completed the certified financial
planner designation and I have interacted with enough investors over the years to learn a few
things and having an advisor is not for everyone if you have these three things in my opinion you
can successfully manage your own finances without not a coach a guide or an advisor and you should
the problem is some people don't have all three especially people who run small businesses some
people are prone to making emotional mistakes as an investor you may know a friend who says
whenever they invest money in something it immediately goes down in value and whenever
they sell it it starts going back up they tell you to do the opposite of what they do I have
some clients who say that they realize investing is emotionally tough that's why they hired me to
keep them from making emotional decisions they love having a qualified advisor to bounce ideas
off of and help them manage their emotions some people have complicated situations because of a
life event like the death of a spouse or a child with special needs or a blended family and they
want more specialized advice Some people prefer to Outsource a lot of things in their lives so
they can focus on what they enjoy and what they do best they often don't want to carry the load
all by themselves wondering if they're doing things right and what they may be missing or
not understanding for these people having an advisor can provide peace of mind and allow
them to live their best life because they would be too stressed doing everything themselves for some
people especially if you've been DIY for your whole life and are getting close to retirement
there's the risk if you are quote hit by a bus you have to start thinking about what's going to
happen to my spouse or my family does my spouse have the knowledge the time and the temperament
to handle everything I want an advisor who can take my place keep things moving along so it's
worth building a relationship right now for some people that makes sense and for others when the
stakes become too high and you're worried about making a huge mistake having a coach or a guide
who's been through this before with other clients can be a huge weight lifted off your shoulders now
in a moment I'm going to reveal the people who shouldn't be paying for a financial advisor but
first this is as good a spot as any to point out important disclosures the information in
this video is for educational purposes this is not specific financial planning health insurance
or investment advice in addition everyone's tax situation is different you should discuss your
tax situation with a qualified Tax Advisor before implementing any planning strategy the people who
really don't need an advisor are the people who've put in the work who pay enough attention to their
Investments and just feel comfortable doing it themselves some people just find pure enjoyment
out of the learning process and are better off without an advisor then the majority of people
under 30 who are are single and just getting started with their career and are simply looking
to save and invest probably don't need an advisor especially if it's something you like to do you
don't need an advisor if your financial situation is super simple you already know the low-cost
efficient ways to build a portfolio and could get your IRA Roth IRA and 401K set up on autopilot
many people reach out to a financial advisor thinking they need help with their investment
management and asset allocation but that's not really where advisors like myself add a ton of
value while creating monitoring and rebalancing an Investment Portfolio is part of it the financial
planning is often far more meaningful for the vast majority of the population I'm talking about tax
planning for now and in the future to keep as much of what you make as possible our Roth conversions
appropriate for your situation should you take a loan from a 401K how best should you use Insurance
to protect your family or grow a tax-free Legacy what strategies should you use to optimize the
best ways to actually withdraw your assets in retirement should you use Roth assets or
traditional 401K assets first or non-retirement assets or some combination it's all this other
stuff too this stuff is really important and where I think an experienced advisor can add
a lot of value I think an experienced advisor who has guided people through this Maze and put
together the puzzle can add a lot of value now there's a number of newer advisors who've come
on board in the last few years they haven't been through some of those financial crises
of the past 20 years they haven't been hardened by that stuff they haven't seen what's gone wrong
sometimes it's better to work with somebody who's been through it and has led clients through it
sometimes when showing Financial of plans we can show how to potentially save hundreds of
thousands of dollars in taxes and interest over time is that worth the annual cost of an advisor
many times the answer is yes but not always in my opinion if you enjoy it you're willing to
put in the time and effort to learn and you can manage your emotions then you shouldn't pay the
money for a personal financial advisor and for many people that's the case but for many others
especially business owners it isn't if you don't have the interest don't have the time or know that
you get anxiety when making financial decisions having a financial guy can really supercharge
your financial life and if you're looking to see what types of strategies I help clients with on
a day-to-day basis to optimize their wealth plan start with this playlist how to create
a 100 percent tax-free retirement income it's a nine part series that is truly eye-opening