01 May Why You Don’t Need a Financial Advisor
One of the most common questions we get asked, is, “What can you do for me?” A reasonable question, but one which doesn’t get to the core of either our service offering or why we are talking to the investor in the first place.
You see, nobody needs a financial advisor. Everything that we do, you can either do yourself or find someone else to do for you – and many choose to go down this path. A better question, rather than, “What can you do for me?” Is, “How can I get the most out of my investment?” This question says that you are looking to achieve results and not just tick boxes.
Take the example of a couple purchasing their first home. Of course, they want to buy something that they both love, a home where they can raise their children, and grow as a family. A financial advisor wants that for their client also, but with the added benefit of ensuring their purchase is treated as an investment, and not just an emotional decision. A good financial advisor will look at the numbers, the likelihood of equity growth, and any opportunities for enhancing the home to increase value. They will advise the couple on whether this is a wise financial decision, as well as being an ideal first home.
Could the couple achieve the same result without the financial advisor? Of course, but the reason they take the advice on board is that they want to maximise their chances of long-term financial gain, rather than just choosing a house and then wishing they had paid more attention in five or ten years. They listen in the same way a patient listens to a doctor, even though they know it’s just a cold, they want the best possible advice, and to get better sooner.
Sure, a financial advisor makes life easier and streamlines complex processes but the most important part of the service is being able to reduce the financial variables, through pointing out potential downsides, and allowing clients to make educated decisions based on robust data, and experience.