People Hate Financial Advisors

With it being easier now than ever to invest your money, most people are ditching financial professionals to manage their own assets. Even after the scandal from the investment app Robinhood, it’s been reported that the platform has had at least $80 billion on the trading service.

The question remains, is this helping people grow their wealth? Or is it actually hurting them?

For the people who invested in Bitcoin back in 2013 and ended up becoming rich. Was it because they believed in the technology? Was it luck? Or a combination of the two? Nobody truly knows. Obviously, we all wish we had put a few thousand dollars into Bitcoin back in the day; but we cannot hop in a DeLorean and travel back in time.

With investing, yes, it is extremely easy for anyone to manage their own assets in low-cost index funds or mutual funds. Yes, anyone with access to the internet can gain access to the same investments that investment professionals have. So why would anyone want to hire an advisor?

The answer is, you probably don’t.

Well, at least a lot of advisors because many of them are simply investing your money just like anyone. Into low-cost investments and managing the risk to protect consumers from catastrophe.

Just like there are good teams in sports and bad teams, there are good advisors and bad advisors. There can only be one champion each year and ultimately many professionals are ones that know enough to get by. It’s the unfortunate truth and many of the relationships people have including you with an advisor may be a family member, a dear friend, or someone that was introduced to you.

In life, you should NEVER settle for less.

When it comes to managing your money, it’s imperative that you have someone playing on your team, not someone else’s. Ultimately many people are working with “finance gurus” who don’t even choose your investments. They give you a cookie-cutter risk questionnaire and the company they work for spits out a solution. Most likely the same or similar solution for lots of other people.

But, is your financial situation the same as the masses?

No, everyone is unique. And everyone’s financial picture is different.

Yet, we’re in 2022 and as human beings, we still safety in the big faceless organizations that are fined millions of dollars every year for financial crimes against their clients. How do they get away with it?

They can afford to.

You can Google,

“Top investment fines from ___(insert any year)______” and you’ll be astonished what you end up finding.

Ultimately, the juice is worth the squeeze. When it comes to churning out profits, financial firms can afford to pay out the hefty fines they pay year after year. This is a huge problem and will remain a problem until more companies can disrupt the market.

Am I biased against large companies being that I don’t work for one anymore? Of course, you can look at any situation and a window up turning into a door. In the end, I would have made more money staying at a large company and secured my financial future. It’s the safe play.

But, when it comes to building a brand, a culture, that you believe in. Then the juice is not worth the squeeze. Because at the end of the day, I’ll look back and say to myself,

“I did my best.”

That’s all it comes down to is doing the best you can each and every day. Standing for something that you believe in. And eventually, you’ll find yourself in a league of your own when it comes down to securing your financial future.

Your Guide,

Joshua Krafchick, “Unconventional Money Guy”

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