Investing Fundamentals

Do You Need a Financial Advisor?

Updated on March 21, 2020 Updated on March 21, 2020
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  1. Show Notes

Investing can be confusing, especially if you are a beginner. Bulls and bears, buy or hold, investing even has its own language! But is investing something anyone can DIY or do you need a financial advisor?

79% of professional money managers cannot beat the market average. So unless you happen to find one in the other 21%, why should you give them a slice of your money via the fees they charge?

Warren Buffet is not going to manage your money because he’s too busy.

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A financial advisor takes a cut regardless of whether he/she makes you money or loses you money. So if you could probably do as well by throwing a dart at the stock page of the Wall Street Journal, what is stopping you from being your own financial advisor?

Time. You’re busy, we all are. But if you make $20 an hour calculate out how much time you would need to spend to do this yourself versus how much you are paying a financial advisor in fees. It will most likely come out that you could do it yourself cheaper.

Fear. Hiding your money under the mattress is less scary, but it is not going to grow your wealth.

Lack of knowledge. If you don’t know what you’re doing, what makes you think you have the knowledge to find someone who does? Investing is not rocket surgery. Every possible resource is available to you via books, the internet, and most helpfully, Listen, Money Matters!

If they’re so good, why are they dealing with your money instead of growing their own Scrooge McDuck like pile? Financial advisors make a living off the fear and ignorance of the average investor. No one will care more about your money than you.

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Candice Elliott - Senior Editor
Candice Elliott is a substantial contributor to Listen Money Matters. She has been a personal finance writer since 2013 and has written extensively on student loan debt, investing, and credit. She has successfully navigated these areas in her own life and knows how to help others do the same. Candice has answered thousands of questions from the LMM community and spent countless hours doing research for hundreds of personal finance articles. She happily calls New Orleans, Louisiana home-the most fun city in the world.

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