Is a Financial Advisor Worth It?

Should you hire a financial advisor? Are they worth the money? What are the reasons to hire an advisor, and are they worth it?

In this episode of the Stuff About Money podcast, Erik Garcia, CFP®, BFA and Xavier Angel, CFP®, ChFC, CLTC discuss 3 reasons why you’d want to hire a financial advisor.

Episode Highlights:

  • Erik explains that he wishes he had known not to try to accumulate in five years what his parents took 30 years to accumulate. (4:32)
  • Xavier shares that one reason people hire a financial advisor is that they don’t have the time to manage their finances themselves. (6:32)
  • Erik explains that making financial decisions can be very challenging, especially when the stakes are high. (12:48)
  • Erik shares that another reason to hire a financial advisor is when your financial life has become too complicated. (15:16)
  • Erik mentions that when we can minimize our bad decisions, we have a higher chance of succeeding. (18:53)
  • Erik explains that the third reason to engage a financial advisor is that you need someone to talk to about money, someone to help coach you through financial decisions. (19:43)
  • Xavier explains that when working with a Certified Financial Planner (CFP), their purpose is centered on dealing with individuals to assist them in talking about money and guiding them when they want guidance. (21:08)
  • Erik explains that a lot of his recent financial planning discussions with clients have been helping them in thinking through their financial decisions. (23:58)
  • Erik shares a study from Vanguard, which says that working with an advisor increases the typical investor’s return on investment accounts by 1-2%. (24:59)
  • Erik discusses how our actions can get in the way of our goals and how a financial planner can help. (26:07)
  • Erik explains why financial planners often serve as quarterbacks. (37:31)
  • Xavier mentions that hiring a financial advisor should not be limited to only those with a high net worth. (38:59)
  • Xavier shares that he wishes that he had understood the role of a financial advisor and had worked with one when he first graduated from college. (40:40)

Key Quotes:

  • “Time is big because you have to have time and in order to come in and begin to read and put those strategies together for yourself.” – Xavier Angel, CFP®, ChFC, CLTC
  • “A financial advisor can help you stay true to your long-term goal, to cut through some of those the fickleness of that emotion, that fear of loss.” – Erik Garcia, CFP®, BFA
  • “Hiring a financial planner shouldn’t just be for that high net worth individual. There are individuals who are just getting started in their careers or changing careers, that may not have a ton of money at that particular moment. But, I think I think working with an advisor or planner can help them to make wise decisions to help them to get to where they want to be to attaining those goals.” – Xavier Angel, CFP®, ChFC, CLTC

Resources Mentioned:

About Erik Garcia

Hi there, I'm Erik. How you manage your money and other resources impacts practically every aspect of your life. I help individuals and families invest plan for a more secure and predictable financial future. Thanks for taking time on my site!

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