Episode 313 - When Should You Hire a Financial Advisor?

The Rational Reminder Podcast

Low-cost index funds and digital tools have revolutionized wealth-building, making it easier than ever before to manage your own investment portfolio. However, additional support and expert advice can be critical to help you reach your financial goals, especially when facing complex financial decisions, feeling overwhelmed, or deciding to change your investment strategy. Today on the Rational Reminder Podcast, we discuss when it makes sense to hire a full-service financial advisor, whether or not every investor needs one, and how professional guidance can enhance your financial outcomes. You’ll find out how delegating your financial decision-making can not only boost your wealth but also improve your wellbeing, increase your peace of mind, and mitigate the impact of cognitive decline on your financial decisions as you age, plus so much more. For valuable insights that could transform your financial future, tune in today!

Key Points From This Episode:

(0:02:15) Why you would hire a financial advisor when DIY investing is so easy.

(0:06:35) The services that financial advisors offer and how you can benefit from them.

(0:10:09) What investor inertia is, how to overcome it, and what the trade-offs are.

(0:16:31) How delegating financial decision-making can improve wealth and wellbeing.

(0:18:16) Insight into the value of financial advice for retirement planning.

(0:22:17) Your Trusted Contact Person (TCP) and why they matter.

(0:23:05) Ways that financial literacy shapes demand and expectations for financial advice.

(0:24:21) Common reasons that people seek professional financial advice.

(0:26:22) How financial advisors act as a commitment device for good financial behaviours.

(0:27:47) Important considerations and questions to ask when hiring a financial advisor.

(0:32:43) Our after-show observations, feedback, banter, updates, and more!

Links From Today’s Episode:

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemind

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — [e-mail] Felix — https://www.pwlcapital.com/author/benjamin-felix/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on X — https://x.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP

‘Why Do Investors Hire Their Financial Advisor?’ — https://www.morningstar.com/financial-advisors/why-do-investors-hire-their-financial-advisor

‘Why Do Investors Keep Their Financial Advisors Around?’ — https://www.morningstar.com/financial-advisors/why-do-investors-keep-their-financial-advisors-around

Center for Fiduciary Excellence (CEFEX) — https://www.cefex.org/

Papers From Today’s Episode:

‘Time Is Money: Rational Life Cycle Inertia and the Delegation of Investment Management’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2350785

‘The Use and Value of Financial Advice for Retirement Planning’ — https://www.pm-research.com/content/iijretire/7/3/46

‘Professional Financial Advice and Subjective Well-Being’ — https://www.researchgate.net/publication/359635224

‘Smoking Hot Portfolios? Overtrading from Self-Control Failure’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3347625