It is quite unfortunate that when a lot of people think about the cost of their financial advisor, they only think about the fee. Often, there are hidden costs that are far greater than the basic fee, like the cost of missed opportunities, available taxes, and the absence of productive planning. Moreover, if your financial advisor is only offering you shallow-level financial advice instead of true financial planning, you might be losing money and a lot more. Therefore, it is crucial that you look for a trusted, authentic, and well-seasoned advisor who will help you achieve your financial goals.

What Is A Financial Advisor

A financial advisor is an expert who provides guidance and advice on how to manage finances, creating a comprehensive financial plan that includes savings, debt management, and so on. Not only that, the service provided also includes investment planning and management, whereby the advisor recommends and manages investment portfolios with the aim of aligning with the client’s risk tolerance and financial goals. Moreover, a financial advisor also assists with tax planning that helps the client minimise their tax liabilities. There are distinct types of financial advisors, like certified financial advisors and independent financial advisors.  

How Much is Your Financial Advisor Costing You 

Let’s take a look at how much your financial advisor could be costing you unawares:

• Financial advice is often superficial and not reactive.  According to financial advisor companies, traditional financial advice tends to be reactive. Meeting with your financial advisor once a year gives room to discuss your investment returns, whether you should invest more, and so on. The conversation typically revolves around financial products like stocks, insurance, and the like. Advisors rarely dig deeper to get an understanding of your goals, financial dynamics, and financial goals. This kind of shallow planning can cost you opportunities that match your vision and financial goals. 

• Financial planning is strategic and holistic.  True financial advice goes beyond advice; it is about designing a long-term strategy that will help grow and protect your wealth. If your financial advisor does not understand that financial planning is a proactive and coordinated approach that puts your entire financial life into perspective, he may be costing you more than the fee he charged you. Furthermore, a planner has to ensure that everything is working together for your financial good; otherwise, if not, that means he is dragging you into the mud, and you might not reach your intended financial goal. 

You have to understand that the cost is not just the fee that these financial advisor companies charge you, but the real cost is in what you are missing. Things like missed opportunities, inefficient structures, uncoordinated strategies, and the like will erode your wealth. If you are ready to work with a team that is dedicated to providing true financial planning, get in touch with Insure Horizons. They provide the best insurance and wealth management strategies that align with your financial goals, protect and grow your wealth