One may ask, when do I need a Financial Advisor, a Financial Therapist, or a financial course. Going even further, one with blind spots may ask, why do you need this? The answer is simple but not always easy to hear. You can’t keep doing the same thing expecting a different result. Also, you can’t use the same thinking to get out of a challenge that you used to get in it.
The financial crisis left Baby Boomers and Genexers feeling betrayed and may have turned Millennials into a “do it yourself” generation, when it comes to how they navigate money. There comes a time when doing it yourself becomes inefficient and stagnating. DIY can sometimes lead to costly mistake that postpone financial goals and it may not account for blind spots connecting to money emotions.
“Do it yourself” can only work for so long.
The average investor, who truly wants to be successful, will eventually need a Financial Advisor. High-income earnings, in general, are smart people. So one can assume they will also be smart investors, right? That may or may not be true. That will depend on their Money Mentality.
The motivator in doing it own your own is fear, fear of missing out, fear of getting taken advantage of, fear of feeling stupid, and fear of someone else having control and getting it wrong. However, should investors be more afraid of not reaching their goals than they are of financial advisors? Should investors seek wisdom through financial courses or consult a Financial Therapist?
There are advantages to having a Financial Advisor and even more when you include a Financial Therapist. An advisor can keep you on track when you are fearful or impulsive. A Financial Therapist can help you process those fears and determine where the pattern started. The Financial Therapist can also help you adjust the thoughts, feels, and behaviors that keep you from trusting and following your Financial Advisors advice.
One of the biggest advantages of working with an advisor is that they can help you sift through all the information to determine what applies to you. Remember as a do it yourselfer you are subject to tons of information. Some of it will serve you well and some will not. Information is available but it can be difficult to separate the fluff from the facts. You may not be able to determine the difference on your own. Doing your research is important but that may be the first step in getting the answers you need.
What’s most important is that you understand your own money history.
A Financial Therapist can help you do that. When you understand your money patterns you can adjust them. Also, many couples fight about finances because they don’t understand each other’s Money Mentality. This step alone can reduce arguments and help couples reach their goals more efficiently.
There are investments that only advisors have access to so even if you have taken financial courses and understand saving, investing, and the markets, you may not be able to get in the game with out an advisor.
The question is not whether investors are capable of investing on their own, as much as it is whether it is necessary. “Just because you can doesn’t mean you should, says Crystal Slaughter. Crystal and Ken Slaughter, a young coupled who’s been married almost 6 years with 2 young children, started using an advisor when they realized that, to gain more peace, they would have to delegate.
Crystal further explained that they respect expertise and that given their growing lifestyle it was time for them to employ a Financial Advisor. “We don’t feel like we lost control, we feel as if we are building a strong team.” They have give up the burden of trying to figure things out on their own in exchange for peace of mind and a place to go when they have questions. The couple also engaged in premarital counseling that included financial courses and advice.
The idea is to get your ducks in a row and begin the process on your own. Then determine when the time is right to graduate to an advisor. Do the research and find out the minimum requirements for the firm or advisor you respect and then set milestones to get there. Once you meet these requirements and you have exhausted your knowledge base, it may be time to graduate to a Financial Advisor.
While you are working toward those milestones working with a Financial Therapist to understand your money history, determine your Money Mentality, and learn tools to reduce stress and anxiety associated with money. Whether you do online financial courses or one-on-one in person counseling taking a step toward clearing your prosperity blocks in powerful.
Get referrals from people you admire financially and meet with the advisors. Go with the one that not only hears your goals but also hears what you are not saying. No matter what, keep an active role in your planning and investing and set clear tasks for each member of the team. The advisor has a job, the investor has a job, and the markets have a job. Track each to make sure the job is getting done and when it is not, determine the next course of action.
With you, a Financial Advisor and a Financial Therapist you and your partner can become a winning team in money. Get ready by doing it yourself. Improve by taking financial courses or meeting with a Financial Therapist. Employ a Financial Advisor to reach the finish line.
Curious about your Money Mentality? Take the Money Mentality Quiz today, click here.