About WiserAdvisor University
WiserAdvisor University is designed to provide you with
high-quality information about investing and finance straight
from those who know best: financial professionals.
The University includes hundreds of informative articles on
dozens of topics of interest to individual investors like you.
If you find an article informative and would like to be contacted
by a financial advisor, we encourage you to fill out our simple form.
The WiserAdvisor service is free, objective, accurate, and confidential,
and will match you to qualified financial advisors who can help you reach your investment goals.
About WiserAdvisor.com
WiserAdvisor.com is an independent and unbiased matching service designed to help individuals find the best financial advisors for their unique needs.
This easy-to-use system prides itself on its simplicity and accuracy. After you fill out a simple form, our algorithms search through the thousands of advisors in our system and provide you with up to three advisors who are best able to help you accomplish your goals.
|
|
|
|
Other Articles
|
|
|
|
|
General
Financial Fallacies: Telling a Mother Her Baby is Ugly
By Michael Chadwick
President, Chadwick Financial Advisors
There is no easy way to tell a mom that their child is not beautiful. I believe all babies are beautiful. This is exactly the dilemma some people face when it comes to their finances. Many people are very happy about some of the things they are doing financially. When I ask people “what is your past experience with financial planning and financial planners” what usually follows is a list of things they are very happy and proud of. If the things they feel good about, are proud of and believe in are in fact not the best, what should be done? My challenge is to somehow communicate to them that the things they are doing may in fact not be in their best interests. That is the equivalent of telling a mother her baby is ugly. The best way I have found to do this is the following statement: If what you believe to be true about your money turned out not be true, when would you like to find out about that.
There are many things that people believe to be true that are not, here are a few examples that I see daily:
15 year mortgage is ”cheaper” than a 30
You are safer having your home paid off vs. fully financed
“Safe” investments such as savings, CD’s, money markets have no risk
Pension, 401(k), 403(b), SEP, SIMPLE type accounts always save people money on taxes
Income taxes are high today
You control the equity in your home
You control the money in your pension plan
I’ll get insurance when I need it. You have to get it when you don’t need it, if you need it, nobody will give it to you.
Term insurance is the cheapest form of insurance
Term insurance is worth the most on the day that you die
Investing in a taxable environment benefits you more than the government
FDIC insurance is better for you than for the Government & the financial institutions
Opportunity costs don’t effect me.
If you or anyone you care for believes in any of these statements, its likely time to have a conversation with a financial professional. Maybe there is a way to find beauty in the baby when you have a clearer lens to look through.
Click here to submit request>
Go Back to Topic Page>
If you are an advisor and would like to see your articles published, click here
Article reprinted by permission. Unauthorized reproduction of content prohibited.
|
|
|
|
