Common Questions & Misconceptions In asking people that don’t have a financial advisor why they haven’t sought the help of an advisor, we have repeatedly heard a few questions and misperceptions. So to save you time, here are the answers to the Top 5 questions you’ve been asking! You’re welcome. 1. Why do I need a financial advisor if I can handle my investments myself? Great question! Many people are doing their own investing through online services such as ETrade, Schwab, etc and don’t want to pay an advisor to pick stocks and mutual funds that they can pick themselves. There are two potential primary advantages of working with a financial advisor instead of using an online service: We have access to alternative assets that are not available through the online services. These alternative assets don't generally move hand-in-hand with the stock market; which means you don’t have “all of your eggs in one basket”; which may protect against big value declines when the stock market drops.By working with a financial advisor, you have access to a person that you can discuss specific situations, goals and questions with that a “computer” cannot offer or replicate. 2. What if I don't have "a lot" to invest? Shouldn't I wait until I have more to talk to a financial advisor? People often believe only wealthy people need the help of a financial advisor. You do not need to have a million dollars for an advisor to provide value to you. Sherpa Financial Advisors views people based on needs, not only net worth. If you're ambitious, we want to work with you on your journey to reach your goals; not just after you have achieved success. 3. What does a financial advisor really do anyway? Many people are confused by the term “financial advisor” and mistakenly believe that advisors simply tell you where to invest your money. An advisor does do that but it is only a piece of what an advisor does for you on a day-to-day basis. Take a look at this chart which might help explain more clearly what an advisor does: 4. What if I'm embarrassed to talk to a financial advisor because there is so much I don't understand about money? Most people feel that way so you are not alone. But don’t worry, we will be sure to explain things so they are easy to understand and we always encourage you to ask as many clarifying questions as you need to make sure you are confident and comfortable. Remember, we all have things we need help with. For example, here at Sherpa, Mike will readily admit that he has to call a plumber to fix a leaky faucet and take his car in for an oil change; otherwise, he’ll spend a lot more time and money trying to fix it himself. 5. Isn't investing too risky nowadays? There are actually risks with not investing and just keeping your money in the bank. To grow your money, reach goals and be able to retire, some level of risk is necessary. But the great news is that depending on your age and comfort level with risk, there are many options that range from very low risk to high risk. Call us to recieve our 8-question Financial Risk Questionnaire to find out more about your risk comfort level. All investments have risk. We cannot guarantee future financial results.The SFA does not give tax or legal advice.