Almost everyone will need to save for the future. One approach would be to earn your paycheck, then put away all your money except essentials in savings accounts. However, given the low-interest rates for deposits, your money may grow a few percents per year using this strategy.

The other strategy is to put your money to work. Investing your money, whether it be in the bond market loaning it to governments and corporations or in the stock market capitalizing companies with it, not only comes with the possibility of higher returns, but also helps to grow the economy. However, investing also comes with greater risks.

Fiduciary financial advisors take on the responsibility of managing your investments for you. They take on the roles of financial planning and investment management so that your money is responsibly invested.

Some people prefer to handle their investments directly rather than trusting them to fiduciary financial advisors. This is understandable, but only if you are making this decision based on correct beliefs rather than mistaken beliefs. Here are five mistaken beliefs that investors make when handling their own investments:

Fiduciary Financial Advisors Cost Too Much

Everyone understands that transaction costs eat into your returns and it is certainly rational to try to reduce those transaction costs. However, keep in mind that even if you handle your own investments, you likely pay a broker fee on every transaction.

Moreover, having an investment advisor can increase the returns on your investments. Thus, even if your management fees are higher, the higher returns may more than make up the difference.

Finally, fiduciary financial advisors know that one of their roles is to grow your nest egg. If your nest egg is being eaten away by fees, you will be less inclined to retain that financial advisor. Thus, fiduciary financial advisors have incentives to keep fees in check.

My Investments Are Too Small

While it is true that some wealth management firms limit their clientele to the ultra-rich, many investment advisors know that everyone, from teachers to small business owners, can benefit from investment advice.

If you are worried that your investments are too small to need financial advice, remember that they are big for you. Without those investments, you may have to put off retirement, downsize your home, or be unable to help your kids with college tuition.

Also, remember that the purpose of public stock offerings is to aggregate investment from many sources to support a company and its products or services. Even if you can only invest $1,000 in the stock market, that is aggregated with all the investments from other small investors to capitalize billion-dollar businesses.

I Will Do OK On My Own

The role of fiduciary financial advisors is to help you to identify your goals and provide advice and guidance to help you reach those goals. The first step of this process can be eye-opening.

You may not realize (or may deliberately avoid thinking about) how much you will need to live securely after retirement. Even after you become eligible for social security at age 62, “doing OK” with your investments may not be good enough for you to reach your goals. A financial advisor, however, has the experience and education to identify strategies that are better than OK.

My Investments Are Simple

The fact that your investments are simple may not be something to brag about. In fact, it may be a red flag. If your investments are not diversified, you risk being wiped out.

Part of a fiduciary financial advisor’s role is to diversify your investments and manage risk. This can help you to weather economic downturns, natural disasters, or even shifts within industries.

I Know What I Am Doing

No one can judge whether your knowledge is good enough to manage your own investments. However, every investor can learn more. Working with a financial advisor is an opportunity to understand how your money can grow.

Financial advisors keep up to date on new financial products and new industries. If you are an experienced stock market investor, a financial advisor may help you to understand commodities markets, thereby improving your investing knowledge.

Fiduciary financial advisors can help you to identify and realize your financial goals regardless of your experience or the size of your account.

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