One of the most commonly held misconceptions in investing is the idea that you must work with a financial advisor in order to be successful.Perhaps this myth has persisted for so long thanks to persistent marketing on behalf of financial advisory firms.However, the reality is that investors who manage their own money are often able to perform just as well or better than those who work with a financial advisor and without any high fees eating into their returns.
Financial Advisors Rarely Beat the Market
Instead of helping you actually beat the market, financial advisors serve more as a coach and counselor, talking you through the tough times and persuading you not to make emotion-based decisions.
They Charge You Regardless of Whether or Not They Make You Money
The fees that financial advisors charge are not based on the returns they deliver but rather are based on how much money you invest.This means that even if they end up losing the money that you entrust them with, you’re still going to get a bill for their services.Not only does this system add extra, unnecessary risk and expenses to your investment strategy, it also leaves little incentive for a financial advisor to perform well.