A certain quote from the hilarious Tina Fey movie ‘Baby Mama’ is perhaps the best way to describe to you the biggest reason you should consider putting your trust in a financial advisor. But first, some back-story; The basic plot of ‘Baby Mama’ focuses around a woman who is unable to become pregnant, and after many tries decides to look into using a surrogate mother to have a child. She is a little hesitant, however, because the whole idea of surrogacy strikes her as kind of weird and science-fictiony. When she visits Chaffee Bicknell (Sigourney Weaver), the owner of a surrogacy agency, Chaffee says to the protagonist, Kate (Tina Fey), “We don’t do our own taxes anymore. We don’t program our computers. We outsource. And what is surrogacy if not outsourcing?”
Kate replies, “Wait, you’re not saying that my baby would be carried by some poor, underpaid woman in the third world?”
Now, if you replace ‘surrogacy’ with ‘financial aid advisor,’ the basic message of the scene rings through (and in a lot less awkward/ cheating science and biology way). There are many things in our society that we have deemed too complicated or unpleasant to do ourselves, so we hire trained professionals to do them for us. By the way, if you hire a financial advisor, they will not be a poor underpaid woman in the third world either. They will be a paid professional who has gone to college and been trained in every aspect of financial advising.
Money management is one of those very complicated things to do while also having a full time job and simultaneously running a household. Investments are confusing, stocks are hard, and 401ks and other things like that can seem impossible. If you want to have these things set up correctly without personally putting in blood, sweat, and tears, hire a financial advisor.
Financial advisor’s jobs are to help you meet your financial goals, which you will discuss and plan with them. Financial advisors will come up with a plan for you to reach your goals because they are highly trained experts in the field of money management. They know exactly what to do to help you get the most out of your money, meaning they can structure your finances in the most effective way possible. Who wouldn’t want to make the most of their hard earned paychecks?
Overall, it makes a lot of sense to have a financial advisor because it is impossible to do everything yourself and still enjoy life. As Chaffee Bicknell eloquently points out in ‘Baby Mama’, we don’t do hard things for ourselves anymore. We outsource because we can. It is “difficult to find the time to prioritize personal finance”. So, if you have the means to have a financial advisor, why not just go for it? Using the services of one will only help your entire financial situation, and with the added bonus of more free time and less stress time, what would motivate a person not to at least look into the services of a financial advisor?
{ 11 comments… read them below or add one }
I’m happy if you have a financial advisor, and it sounds very nice. Maybe he was very helpful in analyzing our financial problems, but according to my personal experience, too much reliance on a financial advisor is not always profitable. CMIIW
Although you raised some very valid points I have trouble trusting someone with my money. I don’t have a unlimited amount of money to invest. I have a modest income and have a very strict budget. A frugal minded person, it’s hard to hand over anything much less than my money to someone else. I really don’t think I have enough income to be advised with to start with. Banking institution are my main issue. For the most part they are in the game to make money and not to protect your money. Coming up with new and unseen ways to charge all those fees that nickel and dime us to death. If we didn’t need a bank to function I would just use my mattress for direct deposit and my finacial advisor.
At the end of the day, it’s really up to you to weigh things to be able to come up with the right decision in money management. Financial Advisors are there to help us determine good investment opportunities as well as to guide us in our spending and what should be done in terms of our finances.
I love looking at things like this from a comparative advantage standpoint. It’s the same when I go to the gym and I pay a fitness trainer to help me and a massage therapist to occasionally tweak my back. These people have been educated for several years, they are qualified and have spent tens of thousands of dollars learning their skill. They are passionate and available to utilize. Of course I will spend a few bucks to use their service, which would cost me years to learn and tens of thousands of dollars to get certified in.
However, from the standpoint of someone who has spent time learning finance and economics, hiring a financial adviser would not be the best decision for me. In addition I have the time and energy to figure it out myself. People have to decide if they are qualified and if they have the time to be their own adviser. Most do not and this is not a problem.
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I have friends who are financial advisors, so I understand the value and benefit of having one… but I looove obsessing over these things! I track all our family’s investments, spending, and budgeting on a spreadsheet, and I update it every day. I can imagine someone who does not have an interest in these areas paying someone else to take care of all of that for them, but I could never imagine not doing it myself. My wife tells me that this makes me a huge nerd, but I’ll wear that label proudly.
I still can’t wrap my head around the concept that some people don’t trust financial advisors. If anyone has an interest in your doing well financially, it’s them – much more so than the banks!
If more people spoke to financial advisors you’d hear a lot less stories of financial hardship and poor investments, I think.
Perfectly said, Michael!
Financial advisors aren’t there to rip you off and run; they make more when you make more, it is really that simple!
A great article and I really hope it gets people thinking a bit more sensibly about investing their trust (and their funds) into the wise hands of a professional!
Hello,
A certified financial advisor is a person who receives special training to assist people manage their money. An advisor (CFA) can guide people budget for significant life goals like purchasing a house & retiring. Finding a Finical Advisor who is trustworthy and loyal is very difficult now.
I’m completely with you on that. Markets are complicated and investing without the right knowledge is as good as gambling with your financial future. However, I’m sure you will agree that it’s hard to find someone you can trust your money with.
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I am trusting my financial advisor because he aware about the all the financial aspects and Mainly about the norms and condition/laws of finance. He also taken care of financial market condition.
Dear CHRIS,
I liked what you said about They know exactly what to do to help you get the most out of your money, meaning they can structure your finances in the most effective way possible. Who wouldn’t want to make the most of their hard earned paychecks?
Continue this kind of articles because they are very good and useful, congratulations.
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