On the Good Life blog, we talk a lot about financial matters ranging from how to identify a good financial advisor to what the point of financial advising is in the first place. What we don’t do is offer financial advice. But as professionals, why can’t financial planners provide financial advice? Here’s what you need to know.

The Short Answer

The short answer is that everyone’s situation is different, and there’s no such thing as one-size-fits-all financial advice. Our blogs aren’t written with the intent of providing any legal, financial, investing, or professional advice. It’s best if you don’t read them with that intention, either. Instead, our objective is to offer general information and furnish helpful resources for those looking to improve their financial standing.

The Long Answer

Financial advice should always be tailored to a client’s specific needs and objectives. To this end, financial professionals have a process they follow when working with their clients to help set them up for success. Here’s what you should expect when working one-on-one with a financial advisor as opposed to searching the web for generic financial advice.

Working with a Financial Advisor

#1 They’ll Get to Know You

Your relationship with your financial advisor is an intimate one, as they have access to your sensitive financial information. From the first meeting, they’ll collect information about your current circumstances, short-term and long-term goals, and risk appetite.

This process can be complicated because our society, in general, has taught us that discussing money with others is not appropriate. “Money shame” is a familiar feeling that many people know. A quick search of the term pulls up hundreds of results related to helping people overcome shame surrounding their finances, often their debts.

Experiencing feelings of shame and anxiety around your finances is normal. These feelings go back to your childhood, when you first began absorbing your family’s values and beliefs, as well as any potentially traumatic experiences you’ve had related to money matters. Financial advisors help take emotions like shame and anxiety out of the equation by simply focusing on the numbers and the actions you can take based on them.

#2 They’ll Make Personalized Recommendations

Once your financial advisor has gotten to know you a little, they’ll be able to make financial recommendations specific to you and your situation. They’ll also explain how the guidance they provide could be beneficial for your goals.

#3 They’ll Be Forthcoming About Fees

Financial advisors who act as fiduciaries—meaning they’re legally obligated to work in their clients’ best interests—will be transparent about the fees associated with any investments they recommend. At the same time, they’ll explain any risks associated with these investments without guaranteeing ROI or making any promises.

#4 They’ll Help Educate You

Unfortunately, the American public school system isn’t designed to teach young people about personal finance and investment. In fact, most people gain what financial knowledge they have either through their parents or through their own hard-earned experience. Financial advisors understand this, which is why they see it as their responsibility to educate you by answering any questions you may have regarding their strategies or recommendations.

#5 They’ll Keep You Involved

Financial advisors regularly send account statements that include information on your investments. Depending on your relationship with your advisor, you may meet periodically to review your current assets and update your plan according to any life changes, such as marriage, children, or a pay cut or increase.

#6 They’ll Protect Your Information

In today’s world, your personal and financial information is likely encrypted within the high-security financial software your advisor uses to protect your sensitive information. By contrast, if you search for generic financial advice on the internet, you’ll come across sites prompting you to list your annual income and other financial information on a form to receive generic financial advice. You don’t know who has access to that form or if your information is being sold to a third party, which can be unsettling.

Get the Help You Need Today

We hope this article sheds some light on our reasons for not offering financial advice online. Due to the intimate and highly individualized nature of proper financial advising, it simply isn’t possible for us to supply the kind of advice many people expect to find.

As proud CFP® professionals affiliated with the Financial Planning Association, our team at Good Life Mt. Pleasant is happy to sit down and answer your questions on a complimentary discovery call. This meeting is a no-obligation consultation where we will discuss your current life circumstances, financial situation, and long-term money goals. It is also an opportunity for you to learn more about us and determine whether you feel comfortable moving forward with our team of financial professionals.

If you’re ready to discover the Good Life, contact us today to schedule your free discovery call.

Get in Touch

The opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual.