Common Reasons People Don’t Want to Work with an Advisor

As a financial advisor, I’m always interested in what financial planning pain points bring people into our office. Sometimes they just had a large windfall of money and want to start getting serious about investing. Sometimes they are going through a divorce and want someone in their corner helping them navigate finances on their own. Other times they’re looking to start saving for retirement like they mean it.

But for all the reasons that people come to our office, there are several reasons that keep others from ever taking that first step. Today, I want to look at some of the most common reasons we’ve heard and what they say about how people often view their money and their futures.

They Don’t Understand What Advisors Do

We’ve talked before about how the advisor is that team member that brings everybody together, but we’re also there to add accountability and help keep you from getting stuck.

This often doesn’t fit a lot of people’s traditional idea of a financial advisor because they think of the investment-only style advisor and not the planning style advisor.  Financial advisors are more than just someone to help you make money—we’re there to help you navigate life’s ups and downs.

When it comes to financial planning, a lot of people (and advisors) start by setting goals. This may seem like a good starting place, but as the old saying goes, “You don’t know what you don’t know.”

In order to set goals, you need a clear understanding of your values so you can fully understand what your real goals should be.

Don’t get me wrong—we’ll talk about money, too. And you won’t need a degree in Economics to understand it.

Our goal as financial advisors is to take the stress out of money by taking you back to the fundamentals of being a good steward.

Maybe you never learned how to budget, save and invest. Some people will tell you, “It’s easy, just put some money in an investment and watch it grow.” 

But what if that doesn’t work? Or worse, what if it works and you don’t know what to do with the money?

Our process creates a better way by starting over and learning what you need to know in the first steps so you can be sure you’re on the right path.

They Don’t Understand Their Own Attitude Toward Money

In many cases, people just don’t know where they’re going—financially or in life in general—and they’re afraid to admit it. So, they’re not even clear what they truly value, what their money scripts are, how they think about money.

To be clear, it’s not all about money. It’s about figuring out how we get to where we want to be. And if we can’t get there, what needs to change and how do we change it? 

We’re here to get you to that confidence level about money so you can make better decisions to move toward what you really want out of life. 

Do you want to get rid of that nagging voice in the back of your mind that wonders if you’ll be okay? Do you want to move forward toward a future you’re confident about?

Are you willing to sit down with someone and open up and talk about details of your life that you’ve maybe never shared with anyone?

That last question is hard for a lot of people, and it’s understandable. If it’s your first time working with a financial professional, you may find that you have a mental block around the prospect of sharing your intimate financial details. Maybe you’re embarrassed or feel a sense of shame around decisions you’ve made in the past.

We’re not here to judge. We don’t care about how you got where you are. We just care about helping you get where you want to be.

Think of it this way: You’re one decision away from getting your purpose, your values and having that life that you’ve always wanted to live and maybe were afraid to live.

They Think Advisors Are Too Expensive

This is one of the most common financial planning pain points.

Working with a financial advisor costs money, it’s true. Some cost more than others, and you can find some investing apps that don’t charge anything, depending on how much money you’re investing with them.

At Clarity, we walk every client through a comprehensive financial plan and then our fee for investing is typically 1% of the assets we manage for you, depending on your situation. That is on par for what you’ll pay for the services a human financial advisor provides at most firms these days. To learn more about our services (and fees) click here.

We could say a lot about why we’re worth the price. We could talk about how research into the advisor’s alpha has shown that people who work with advisors consistently earn more than people who don’t. We could talk about our investing philosophy and how it will impact your bottom line. 

But the point I think is most important in this conversation is this: We pay for the input of a professional in so many areas of our lives, why is it so hard to do so with our finances?

Think about it: How you live your life tomorrow depends on what you do with your money today. What you want to do in retirement, where you want to go—your future largely depends on building a plan and sticking to it. 

Isn’t that worth consulting a professional?

They Think Advisors Only Work with Wealthy People

We want to work with you. There is no price tag on your head because of the level of where you are or who you think of when you hear “wealthy.”

Wealth doesn’t have a label, and it can come in all shapes and sizes. And often, right at the low end of things, people don’t want to spend money on themselves—they just want their daily needs met for today without investing in tomorrow.

To be clear, yes, some advisors only work with wealthy clients. But we’re not interested in just helping wealthy people become more wealthy.

The problem with this mindset is that it’s exclusionary. The question to consider is not, “Do you have enough money?” It’s “If you’re not where you want to be, then how are you ever going to get there without a plan?”

Regardless of how many zeros are in your net worth, we believe we can help you find a true life plan, building something that can last, has a legacy in it, for whatever your values are.

In the end, whether or not you work with us at Clarity—and whatever your financial planning pain points may be—we hope you will consider consulting a professional to help you build a future you can be confident in. Click here to schedule a consultation with our team today.

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