Five reasons why you should pay for financial adviceSep 25, 2021
The top 5 reasons why paying an advisor roughly 1% per year is worth it:
1️⃣ 𝙔𝙤𝙪 𝙬𝙤𝙣'𝙩 𝙢𝙖𝙠𝙚 𝙙𝙪𝙢𝙗 𝙙𝙚𝙘𝙞𝙨𝙞𝙤𝙣𝙨. When your rec hockey buddy tells you he's mortgaging his house to buy a penny stock or a cryptocurrency that you don't even understand, someone will be there to talk you down or at least through it. Statistically speaking, people that work with an advisor retire richer (google it if you don't believe me). 😜
2️⃣ 𝙄𝙩'𝙨 𝙢𝙤𝙧𝙚 𝙛𝙪𝙣. No, don't go to the bank and deal with the 'teller of the week'; instead find yourself a professional that you actually like dealing with! I love my accountants (shout out to True North Accounting - @truenorthaccounting) and my lawyer (shout out to Hudson Law - @hudsonlawyyc) so much so that I look forward to calling them when I need to. Get that with your money person, it will be awesome I promise.
3️⃣ 𝙄𝙩'𝙨 𝙚𝙖𝙨𝙮. Investment research, tax preparation, withdrawing from your RESP accounts - do that on your own once and you'll appreciate the idea of 'opportunity cost'.
4️⃣𝙃𝙤𝙬 𝙢𝙪𝙘𝙝 𝙞𝙨 𝙮𝙤𝙪𝙧 𝙩𝙞𝙢𝙚 𝙬𝙤𝙧𝙩𝙝? Serious question. To me, my time is near priceless; if I can shave an hour off of my day that can be reallocated to spending time with my girls (wife, daughters & dog), you better believe I will pay good loot for it! If you love managing your investments and are good at it - absolutely stick with it! My experience tells me that most people would rather be filing their taxes than doing research on mutual funds.
5️⃣𝙄𝙩'𝙨 𝙧𝙚𝙖𝙡𝙡𝙮 𝙣𝙤𝙩 𝙩𝙝𝙖𝙩 𝙚𝙭𝙥𝙚𝙣𝙨𝙞𝙫𝙚. If you aren't 'all-in' with points one through four, consider this ➡️ Your extra fee for having a professional manage your money is somewhere between 0.5% and 1.5% (in my personal experience, no study to quote here). If you're worried about the 0.5% you're paying an advisor, you better know your annualized return to a tenth of a percentage point too! Most people couldn't tell you what their investments have returned over a five year period, but are ready to put their (non-existent advisor) on blast for charging 'too much'.
𝚁𝚎𝚝𝚞𝚛𝚗𝚜 𝚊𝚗𝚍 𝚏𝚎𝚎𝚜 𝚊𝚛𝚎 𝚘𝚗𝚕𝚢 𝚊 𝚜𝚖𝚊𝚕𝚕 𝚙𝚊𝚛𝚝 𝚘𝚏 𝚝𝚑𝚎 𝚌𝚘𝚗𝚟𝚎𝚛𝚜𝚊𝚝𝚒𝚘𝚗, 𝐭𝐡𝐞𝐫𝐞.𝐢𝐬.𝐒𝐎.𝐌𝐔𝐂𝐇.𝐌𝐎𝐑𝐄. 𝚝𝚘 𝚠𝚘𝚛𝚔𝚒𝚗𝚐 𝚠𝚒𝚝𝚑 𝚊𝚗 𝚊𝚍𝚟𝚒𝚜𝚘𝚛.
We know we are biased, so lets hear it! Comment below on why you agree or disagree (be kind 🥴).
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