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Speaking with a financial advisor over the phone

Why You Should Speak with an Advisor – Even If You Aren’t Going to Use Them

Let’s be real for a second; finances and planning for the future can be super confusing. This may have you feeling discouraged or overwhelmed, and that is okay. Most investors go through this stage during their financial journey, but there are steps that you can take to make it easier. One is to learn, which you are already doing by reading this blog. Good job! Another option is speaking with a financial advisor. No, you don’t have to hire them, just talk with them. Let us explain why.  

Note: This article contains affiliate links. This means that if you purchase a product or sign up for a company through one of our links, Thrive Oak will make a small commission (at no extra cost to you).

What is a Financial Advisor?

A financial advisor is someone whose whole career revolves around money. They have dedicated their lives to learning all the ins, outs, and upside-downs of the financial world, and now they share it with you. A financial advisor helps people organize their finances and create an in-depth plan for future investments and strategies. But that is not all! 

What You Don’t Know

Shaking hands with a financial advisor

Do you know the phrase “you don’t know what you don’t know?” Speaking with a financial advisor will help fill you in on the things that you don’t know! Even in a consultation, an advisor will likely be able to provide you with information that you had no idea about. They may advise a type of investing that you didn’t realize you could utilize, tell you about a loophole you didn’t know existed, or introduce you to an investment strategy that works perfectly for your life. One consultation with an advisor could open doors that you could then investigate further on your own. 

Ask the Financial Advisor Questions

If you could ask Lebron James for advice on how to help your jump shot, you wouldn’t hesitate, right? The same goes when speaking with a professional advisor. They are professionals and have a wealth of information to share, and they will as long as you ask! Don’t worry about sounding or feeling dumb, because this is the best way to learn. Finances are not an innate knowledge that we are born with, we must learn it; the best way to do that is by asking a pro a bunch of questions. 

So, when you head into your financial consultation, have a big list of questions and ask them all. Take notes as you go. If you can’t write fast enough, you could even ask if they will let you record the meeting so that you can review it later. They may not agree, but it is worth it to ask! 

Speaking with a financial advisor over the phone

As you listen, the pieces of the puzzle will click together. When something doesn’t click, this is your chance to ask more questions or investigate on your own time. If what they are saying doesn’t add up, they may be spouting off some BS. If they do, oh well; it will just strengthen your BS meter for future investing. 

If, however, the thought of going into a financial advisor and asking a bunch of questions is just downright horrid, you could try out investing on your own first. Trial $100 on your own and see what roadblocks you encounter. This will help you ask better questions when you are ready. 

Multiple Opinions

Similar to when you apply for a loan, you make sure to talk to various lenders so you can learn the best option for you. You don’t just go with the first one your talk to, but you investigate everything available. By chatting with multiple financial advisors, you will hear a lot of different opinions and ideas. At the same time, you will likely see trends that every advisor is suggesting. It could be the advice to get started on your IRA. If everyone is telling you to do that, then you know that it is a solid place to start, and you can do it on your own.

You Don’t Have to Hire

This is very important, are you ready? Just because you speak with a financial advisor, it doesn’t mean that you have to hire them! Most financial advisors offer a free (make sure to double-check) consultation. During that time, they will ask you a lot of questions about your finances and will pitch you a vision of what it would be like to work together. It will sound beautiful, but remember that you have no obligation to hire them after the consultation, even though they will pressure you to do so. It is free for a reason, so you can take it as a learning opportunity and move on at no cost to you! 

Costs of a Financial Advisor

Maybe you are ready to hire a financial advisor. By talking with them, you learn the benefits of each company and the personality of your advisor. Everyone offers something different, and you are going to want a company and an advisor that meshes well with you. 

Not only that, but you can ask how these advisors get paid, and they legally have to tell you. Are they earning fees based on your portfolio, by the hour, or do they receive commissions by getting you to sign up for specific stuff? By learning how they earn their money, you will see where their motivation lies. If that match up with you, awesome. If not, try someone else.  

Take Action

We understand that investing is scary, especially when all that financial jargon can be so complicated. BUT, don’t let that scare you off. Just like with any skill or venture, it takes practice. You may fail every now and then, but you will learn from those mistakes. Take the plunge even when it is uncomfortable because the long-term reward of financial independence or early retirement is worth it. Get started today! And remember, you don't even have to meet with them in person! You can do a meeting simply over the phone!

Begin right from your couch with these online investment firms that will help immediately set up a free consultation with an advisor. 

You can also access financial planning services through some Investment Apps as well as your local brokerages. If you would like to stay local, and meet someone face to face, chat with friends and family to see who they recommend. Once you have a few recommendations, simply call their office, check if a primary consultation is free, and book a time to meet!

If you would like to learn more about hiring a financial advisor, check out our post on The Pros and Cons of Financial Advisors.