Many people shy away from hiring a financial advisor because they think they aren’t wealthy enough. In today’s blog post, I will discuss that this mindset has evolved as a result of some arrogant and greedy decisions by those in the financial planning and investment industry. However, there is good news in that even those who are not wealthy can still get the financial guidance they need to possibly one day become wealthy.
WHO’S FAULT IS IT?
I often times hear people say that they are a “small fish” and “aren’t big enough or wealthy enough to work with a financial advisor”. But why do they say this or feel that way? Is it there fault or has a precedent been set that causes them to say things like that?
In my experience, our industry is at fault. We do a horrible job of helping people, especially those who are not wealthy. This is just not right!
Do you remember when you were younger and tried to get a credit card, but you were unable to do so because you didn’t have credit. They would tell you that you “need credit to get credit”. Then you would respond by saying “how do I get credit if I don’t have credit”. It was a vicious circle. Working with a financial advisor has evolved into this same conundrum. In many cases you can’t work with one until you have significant wealth, but how can you build significant wealth if you can’t get anyone to help you?
I love how Ric Edelman of Edelman Financial Services puts it. He says that financial advisors only working with wealthy people is the equivalent of doctors choosing to only work with healthy people. Can you imagine if doctors did that? So, why do we treat financial planning differently? Why is it that firm after firm will turn people away or tell them that they are not financially healthy enough to work with? Ric Edelman rightfully says that this approach is very arrogant and rude.
This mindset of financial advisors and firms who only work with the wealthy is one of greed. Somewhere along the line, we’ve forgotten where we’ve come from and that we are in this business to help people. We’ve been blinded by greed and have the mentality that if certain people won’t pay us as much as others then we must turn them away. Again, imagine if doctors treated the unhealthy that way. There are many non-wealthy people who would love to become financially healthy, but they just need someone willing to help them.
EXPECT TO PAY SOMETHING
It’s not as if people don’t expect to pay something. Most rational people are willing to pay a fee for something of value they receive in return. But the problem is many don’t get an opportunity to pay the fee because they are turned away at the door for not being wealthy enough.
It’s no wonder that people are hesitant to talk with financial advisors. I get upset just writing about it, so I can imagine how many of you feel.
WHY YOU DON’T HAVE TO BE WEALTHY TO HIRE A FINANCIAL ADVISOR
Financial Planning is NOT just for the wealthy. It’s not an exclusive club, or at least it shouldn’t be. It’s simply a process you go through, whether you’re wealthy or not, to make good financial decisions. And the implications of this are a possibly higher net worth and a plan of action to reach your goals.
There are many financial decisions in life that people face regardless of their net worth – decisions such as how to buy a home, planning for a wedding, how to avoid the impact of a job loss, where and how to invest, choosing employee benefits, handling debt, etc.
WHERE TO TURN FOR HELP
Common sense tells you that both the wealthy and non-wealthy can benefit from making good financial decisions. Therefore, this alone tells you that you don’t have to be wealthy to hire a financial advisor.
I encourage you to not let some of these greedy and arrogant financial advisors / firms dissuade you from seeking help if you are truly wanting it and understand that it may cost something. Luckily there are a growing number of firms out there willing to work with the “non-wealthy” to help them make good financial decisions, build their wealth, and lay the groundwork for reaching various goals.
If you need any help in getting organized or are wondering how the benefits of financial planning apply to you and your specific circumstances, then feel free to Contact Us. We would love an opportunity to help you down this exciting path. After all, it can actually be fun to grow your wealth. But it is not fun if you are made to feel lowly, not good enough, or not wealthy enough. You won’t experience that with us; I assure you!
Have you ever been turned down by a financial advisor? What were the reasons? Please share any stories or comments you have below.
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