5 Myths about Financial Advisors: Debunked

Oct 24, 2022 2 min read

“Only millionaires need a financial advisor.”

“I’m not old enough to talk to someone about managing my money.”

“Wealth management is for people who have yachts, not minivans.”

If you’ve ever thought any of these things, you’ve probably bought into the myths regarding financial advisors and planning. It’s never too early—or too late—to start thinking about your future. And today is when your future starts.

Maybe you have reservations about consulting a financial advisor because you're uncertain about what to expect. Here are some common misconceptions about financial advisors and the truth you should know:

Myth #1: Most people don't need financial advisors

Truth: While it's true that you may have the knowledge and ability to manage your own finances, the financial world is complicated. Plus, it’s hard to make decisions about your future when you’re wrapped up in the day-to-day of your life. A qualified financial advisor has the knowledge to help you navigate a steady path towards your financial goals and can help you juggle your various financial priorities.

Myth #2: All financial advisors are the same

Truth: Financial advisors are not covered by uniform state or federal regulations, so there can be a considerable disparity in their qualifications and business practices. Some may focus in one area – such as investment planning – while others may sell a specific range of products, such as insurance. A qualified financial advisor generally looks at your finances as an interrelated whole and can help you with many of your financial needs.

Myth #3: Financial advisors serve only the wealthy

Truth: Want to see a financial advisor get fired up? This is an uphill climb they face daily. While some advisors only take on clients with a minimum amount of assets to invest, most only require that their clients have at least some discretionary income. In fact, some advisors prefer to work with tighter budgets because they can make the biggest impact in assisting that family as they work to achieve their goals.  All in all, financial advisors work with people in all stages of life, helping them set up plans for college, retirement, estates, business succession and more.

Myth #4: Financial advisors are only interested in comprehensive plans

Truth: Financial advisors generally prefer to offer advice within the context of a client's current situation and overall financial goals. However, financial advisors frequently help clients with specific actions, such as rolling over a retirement account or developing a realistic budget.

Myth #5: Financial planners aren't worth the expense

Truth: Like other professionals, financial advisors receive compensation for their services, and it's important for you to understand how they're paid. But a good financial advisor ensures that those fees are worthwhile by giving you confidence that you are working toward making your goals a reality.

You don’t need to be a millionaire, be a certain age or own an extravagant boat to talk with a financial advisory. A Farm Bureau financial advisor can help you develop an overall strategy for approaching your financial goals that not only anticipates what you'll need to do to reach them, but also remains flexible enough to accommodate your evolving financial needs. Find a Farm Bureau advisor and start the conversation today.

Want to learn more?

Contact a local FBFS agent or advisor for answers personalized to you.