What’s a Financial Advisor, and Do I Need One for Investing?

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Listen to this again. I got to thank Abby for these statistics, but these are fantastic. We're talking about investment advisors today.About one in four Americans currently works with a financial advisor. One in four, 25%. I was actually kind of surprised by that. And those who were asked, what's the one factor that people look for?Trust was the number one thing. So it's all about trust. Trusting somebody with 60 or 70% saying that matters the most, that trust.And here's another interesting statistic, and this comes from Magnify money back in 2022, but I think it's still relevant today. Nearly 95% of those who pay for an advisor say it's worth the cost. So 1 in 4Americans, 60, 70% say it's trust.And 95%, I thought that was a whopping number. Pay an advisor, say it's worth, worth the cost. But you might be listening right now. You're like, raph, I don't have a financial advisor.So why do so many people hold back and not invest in that? This is from Financial Advisor magazine. Almost half of U.S. adults thinks advisors are too expensive or only for the wealthy.Hey, we talked about this all through this series on investments. There's this belief that you have to be a wealthy person to be able to afford an advisor. And listen to this statistic.This was actually kind of shocking to me. 59% say they want financial advice but don't know where to get it. Well, let's get right to that question.Got this question from one of our listeners today. And this just absolutely takes home exactly what we're talking about.Said this, Ralph, do I really need a financial advisor or can I just handle investing on my own? What a great question. See, many people are thinking the same thing you're thinking.I'm so happy you sent that in because this is so valuable for today. Many people weigh the cost of an advisor against the benefits. Listen, I'm an accountant. That's what I do for a living. Cost versus value benefits.And here's the thing, if you do it yourself, it's absolutely going to be cheaper. You're going to save fees and you're going to stay in control of things. But the problem is when you're doing it yourself, you don't have any help.It's pretty straightforward and simple, isn't it? So what does an advisor bring to the table when advisor offers strategic guidance on things like taxes, on how to build that retirement.And my big takeaway for today, and this is why I actually use an investment Advisor is for peace of mind. So now you're thinking, okay, Ralph, you've given me both sides of this, but how do I decide what is the best thing for me?And that's what we really need to talk about on today's show. Do you really need a financial advisor or is do it yourself investing enough? I'll give you a part of the answer right now.It depends on your situation. But let's unpack this when I can tell you exactly how to do this. When advice matters the most, let's handle that on today's show.This is Financially Confident Christian, your daily dose of gospel, grounded insight and faith driven tips to help you break the cycle of financial shame with confidence. Hello there. Welcome to the show. I'm Ralph. Thank you for joining me again today.As we continue in this final week of our 30 day investment series, we've been talking all about all kinds of investments for people just like you. People just like me. Not super wealthy people, but people who are just looking to have a little bit of extra income.That passive income, which is exactly what we talked about on yesterday's show, how to be the boss of your money and how to put your money to work for you. So if you missed that, I'm going to encourage you to check it out. You can find all of our episodes at Financially Confident Christian.Yesterday we talked again about wise planning, diverse income streams and faithful stewardship. Now gets it back to the question of today. Why do I need a financial advisor? Well, honestly, that's kind of what I do for a living.Now I don't do investment advising, but to help people with tax strategies. Help people with investment strategies. And listen, I'm not tooting my own horn, but I've seen where this adds real value to people.And as an accountant, as a coach, I've seen how this has helped people recognize when they can handle things on their own. And guess what? Sometimes it's a little too complicated. It's gotten a little too complex.And I'll never forget, I had a client who refused to use advisors. He would come in every year, I would do his taxes and he said, ralph, I don't need a financial advisor. I'm not paying no seeds. They charge a min.Ralph, I can do this on my own. Listen, I've got a computer, I've got the Internet, I can go read all the things. And guess what, Ralph, I'll do better than they can do.And I said, okay, I hear what you're saying. But he started to develop some wealth. He started to have more complex things. And I said, listen, I said, go talk to an investment advisor.I'm going to encourage you to do that too. We'll talk a little bit of that later in the show. But I encourage him.When he finally met with one, he said, ralph, you're never going to believe this. I found things that I was doing completely wrong. I said, you think so? He actually took my advice. He found some new opportunities.When he ended up going into those opportunities, I was able to hack them, actually help him find some new tax saving strategies. And at the end of the day, he said, ralph, I wish I had known. Or better yet, he said, I wish I had done this 10 years ago.Which leads me to this verse from the Bible today. Comes from Proverbs 15:22. And it reminds us this, and I've used this on this show a million times. Plans fail for the lack of counsel.But with many advisors, they succeed. And this is what this client learned. The right advice can change everything.And you're not going to get that advice if you don't reach out and talk to somebody. So let's get into the key points for today, the real meat and potatoes of what we're talking about today.By using an advisor, you're going to get guidance. They're going to show you what you can do.And listen, when you work with an advisor, they're going to understand your belief structure, they're going to understand your tolerance for risk. They're going to understand the things that you want to invest in. That's really important. So make sure you choose the right advisor.We'll talk about that in another show. But advisors provide that guidance. They can provide that planning. What did the Bible say? Plans fail for lack of counsel.So the Bible's telling us find that planning. And one of the things I really love about investment advisor. And listen, my investment advisor has caught me on this one a few times as well.Accountability. There have been times when I'll call up my advisor. His name's actually Remo. I say, remo, we got to sell this, man. The market is crashing.He's like, ralph, hold on a second, dude, calm down. Long term view. So that's the thing. They're going to bring guidance, they're going to bring planning and accountability.Now there are some pros to that. As we talked about, the expertise of those people, people like me, I've been doing this for 30 years.A lot of investment advisors have a ton of schooling. They know what the markets do. The other thing like Remo brings for Me, objectivity. He understands both sides of this.He's not going to react emotionally. And that long term belief, that long term strategy, which is so important.If you didn't hear anything else I've talked about over the past 30 days in investments, you got to have that long term strategy. Now I might be saying rap. Okay, You've painted a beautiful picture, man. That's a nice looking house. White picket fence. It looks great.But there's got to be some downsides, Rafa. Of course there are. One of the downsides is they cost money. Of course. You get what you pay for in life, though, they are going to cost you something.My bigger downside, or my biggest con is that not every visor is equally trustworthy. So as I said, what did the statistics that Abby helped us start with today? Trust. That's what you got to find somebody you trust.But when your goals are getting more complex and your accounts are getting larger, that's when you really need to lean into the idea of finding an advisor. I'm gonna give you a little pro tip right now. Look for an advisor who's a fiduciary.Now, it's a big fancy term, but a fiduciary is somebody that works in your best interest. They have a fiduciary responsibility for you. You don't want some client just selling you investments. That's why I'm not a big fan of banks.Banks claim to sell investments, so what they're doing is they're selling you a product. I don't like product salesmen in this area look for what's called a fiduciary.You'll see some investment advisors advertising on TV sometimes, and they'll say they're not just an advisor, they're a fiduciary. That's what you're really looking for, a fiduciary, someone who acts in your best interest. Because here's the truth.Advisors can help simplify decisions and bring you peace of mind. My guy, Remo, he brings me objectivity because there are many times when I'm like, sell it all. Remo, he's like, ralph, relax, dude.We gotta think long term. He helps me break down those emotional investment mistakes.And listen, if we're gonna be honest with each other, ask yourself right now, how many times have you reacted emotionally? Maybe it's not in investments, but, man, I get myself in trouble. My marriage, all the time wife and I'll be having some words and I act emotionally.It never ends up good, does it? Well, financial things work the same way. When we react emotionally, we're gonna make mistakes. But understand the costs vary.Like I said, I'm going very transparent about this. Make sure there's value and make sure those values are outweighing the fees.Because I've worked with some clients, their investment advisors charge a ton of money. I'm like, wait a minute, this guy's not doing anything for you.So understand the cost, understanding what they're, what you're paying for and the value you're getting. Like I said, remember that fiduciary thing? Because not all investment advisors are equal. Research them, go meet with them, ask them tough questions.Ask them their philosophy. Ask them how many times they're going to hear from you a year. Ask them how approachable they are. Find one with integrity. I dare say find one.That's a Christian device. Just a Christian show. Most of the time, people coming to me, they're Christian people. Go ask them that question.I think it's totally fine to say to an investment advisor, what is your belief system? Because one of the things we talked about a week or so ago is value based investing. Make sure they understand it.You want to invest in things that meet your value structure. The truth is, if your finances are very straightforward, you may not need one yet.I'm going to use that word yet because it's so important to think about that.But as they get more complex, as you start to build those savings, if you're doing the things we talk about on the show, the truth is good advice can save you thousands of dollars. Trust me on this. I was one of those people that was on the fence. Oh, I can do this myself. I've got a MBA from the university. I can do this.I don't need an investment advisor. And I finally broke down. I went and met with somebody and he showed me all the things that I could do better.And since I switched to him, man, the things are looking better. Let's get right into our Bible verse today.I know I talked about a Bible verse early, but I want to go back to this one again because I really want to reinforce this. I want you to kind of paint this one in your whole investment strategy again. That's Proverbs 15:22.Plans fail for lack of counsel, but with many advisors, they succeed. This is what we're talking about today. Build those plans, but find that counsel. And guess what? I've got another bonus verse today.This one comes from the book of James. This is from James, Chapter one, verse five.And we're going to reinforce it if Any of you lacks wisdom, you should ask God, who gives generously to all without finding fault, and it will be given to you. Those are really two things to really anchor your belief structure as it relates to investments. Go find that counsel if you lack wisdom.Listen, I don't expect you to be a financial guru. Listen, this is what I do for a living and I have a financial advisor. So I encourage you today, go do that. How about we pray together?Lord, we just thank you today for bringing us this message of hope and this message of understanding what this can look like in our lives. Lord, we ask you to give us discernment. Help us choose whether we need to seek a professional.And then if we decide that we're going to seek one, Lord, help us to find the right one.Lead us to somebody who's wise, Lead us to somebody who's trustworthy, and lead us to somebody that will share our values and help us build that kingdom impact. And we just thank you for giving us counsel through both your word and also through wise people that you've put in front of us.Lord, we just thank you in the name of Jesus. Amen. So here's my one action item for you today. If you've never spoken with a financial advisor, I'm going to encourage you.Schedule free consultation with somebody. You don't have to pay for this at all. Maybe they'll do a zoom call. They'll do a phone call. Go meet with them. Just schedule a call.Go sit down with them, get an idea of what they can do for you. If it's not the right fit, walk out the door and go meet with somebody else. Learn what they offer and whether it fits your needs.So let's recap for just a minute. Advisors provide expertise and accountability, but like I said, there's a cost for that. Not all advisors are equal.It's all about integrity and trust. Those things are essential. Like I said, do it yourself may be fine for simple cases, but. But wisdom multiplies with counsel.What's God calling us to do? He's calling us to seek wise guidance for your success. So my key takeaway today, seek wise counsel when needed. Not everyone requires an advisor.It's not some one size fits all. And the right choice balances your goals, complexity, and trust. Well, make sure you join me tomorrow.We're going to talk about understanding behavioral finance when emotions affect your investing. Because so many people make rash emotional decisions when it comes to investing. And guess what? Most of the time, they're the wrong decisions.Well, today I want to offer you something. I just finished penning my third book. The name of the book is called how to Become a Financially Confident Christian.And I would encourage you right now, you can get an absolutely free copy of this book. You can go right to this website and download it. I want you to share this book with friends, share it with family.Hey, maybe even share it with your church group. It's 30 years of me working with clients to help them build that financial confidence.You can get a copy right now, today, absolutely free by going to financiallyconfidentchristian.com becoming get your copy today. And guess what? Share that website with as many people as you know. I don't care. Send it to everybody.Again, that's financiallyconfidentchristian.com becoming in the end, the choice is yours. Whether you do it yourself or you choose an advisor. I'm not telling you they can't work. Both can work. What matters in the end is having a clear plan.Peace of mind will always beat guesswork. So today, go be that financially confident Christian. Stay financially savvy. God bless you. And you have a great day today.