The Reality Behind Two Myths About Financial Planners

Mia Nelson

Managing your finances can seem like a daunting task to undertake, but financial planners are professionals that can help you achieve your financial goals through sound planning and investments. However, many individuals will forego the benefits of working with a professional planner because they believe a couple of common misconceptions about working with these individuals. By exposing these myths, you may decide that hiring one of these professionals will be the best option for meeting your financial needs. 

Myth: You Need A Lot Of Assets To Hire A Financial Planner

Some people assume that they do not make enough money to use the services of a financial planner. Luckily, this is far from the truth, and everyone can benefit from working with these individuals. 

It is possible to set up your bank account to automatically contribute a small amount of money to your savings and investment accounts. While this may not seem like it would help you achieve major financial goals, these small contributions will add up. Over time, these small investments will also earn interest that will further add to your savings or retirement accounts. By hiring a financial planner, you make it a simple task to set up one of these accounts that is tailored to your unique financial needs and situation. 

Myth: Financial Planners Are Too Expensive

Another common notion is that financial planners are extremely expensive individuals to hire. Luckily, this is not always the case. While there are many planners that work for an hourly fee, most work off of a performance basis. As a result, their earnings will be directly tied to the performance of your account. 

The exact amount of this fee can vary greatly from provider to provider, and you will need to carefully read your contract with the financial planner to know exactly what you can expect to be charged. Typically, this payment is usually collected automatically from the client's investment account. Due to this convenient payment plan, you can enjoy the benefits of financial planning without having to pay anything out of pocket. 

Managing your personal finances can seem like a daunting and overwhelming task. Luckily, financial planners can help reduce the difficulty of this task, and this can help improve your financial health without consuming massive amounts of your free time. After learning the reality behind these two commonly believed myths, you will be in a better position to decide if a financial planner like one from Benchmark Financial Network is someone you should hire.