It’s an industry which is sometimes just regarded as being reserved for the rich and famous, but look deeper into the financial planning sector and you’ll find more surprises than you could ever imagine. This is an industry which has changed enormously over recent times and while big bucks used to be thrown around to various advisors, prices in some areas have lowered while new techniques and technologies are helping the cause as well.
Taking this into account, we will today be taking a look at the industry in detail and highlighting some of the main misconceptions that arise from it. Let’s get started.
Myth #1 – They are only for the rich
Wind back the clock, and this myth may very well have been correct. Nowadays, not so much.
The likes of RoboAdvisors.com have changed the landscape completely and gone are the days where you require a dedicated professional to carry out all of the tasks for you.
It’s not all about automated systems though. Some professionals in this industry charge on a per hour basis and many people feel that this makes the service completely affordable – when the potential rewards are on the table.
Sure, there are some that charge through the roof – but don’t brand everyone in the same category.
Myth #2 – If your finances are simple, the internet will do everything for you
This is perhaps one of the most dangerous misconceptions about the whole industry. The internet is regularly classed as the savior of all problems, but in the middle of that invaluable information is a lot of things that you really don’t have to read. In fact, quite a lot of it will do you more harm than good.
Most people who have so-called “simple finances” believe that the online approach is sufficient. However, as well as the potential for reading misinformation, all circumstances are different. It doesn’t have to revolve around complex investments either, the advice might surround something like the type of insurance the person should be purchasing. It’s something that can protect you against future problems, which is what a lot of people fail to realize.
Myth #3 – Financial planning is a one-time job
This is probably one of the most common myths that arise from the industry, although in fairness it occurs in a lot of sectors. In short, financial planning isn’t a one-time job, it requires constant attention. Some people have likened it to visiting a doctor, whereby you wouldn’t just go once and leave it for the rest of your life. Just like your health, your finances are constantly changing and this needs to be taken into account as you plan your visits.
Sure, some people might have to go more regularly than others. At the same time, if you’ve changed jobs, bought a house or even started investing, you’ll have more reason to go. Over time, everyone’s finances need a fresh pair of eyes on them though – which is why this type of advice should never be regarded as a one-time occurrence.
