According to Schwab’s 2021 Modern Wealth Survey, only 33 percent of Americans have a written financial plan. This low number can be attributed to many factors, but a big one is the wealth of misinformation that’s out there about wealth management.

There are all sorts of wealth management myths floating around, and it’s important to separate fact from fiction. In this blog post, we’ll debunk the most common wealth management myths so you can make informed decisions about your financial future.

Wealth Management Is Only for the Rich

Fact: Wealth management is for anyone who wants to take control of their finances and grow their wealth. You don’t need to be wealthy to benefit from wealth management services.

Wealth management is a process that includes goal setting, asset allocation, investment selection, and ongoing monitoring and review. It can be helpful for people at all stages of their financial journey, whether they’re just starting or have been investing for decades.

You Need to Be a High Earner to Invest

Fact: You don’t need to be a high earner to invest. You can start investing with very little money.

All sorts of investment opportunities are available, from low-cost index funds to more expensive actively managed funds. No matter your income level, there’s an investment option for you.

What’s important is that you start investing early and often. The sooner you start, the longer your investments will have to grow.

Portfolio Diversification Is Only for Big Investors

Fact: Diversification is important for all investors, no matter the size of their portfolio.

Diversifying your investments helps to mitigate risk and can improve returns over time. When you diversify, you’re investing in various asset classes, including stocks, bonds, and cash. This mix of assets can help protect your portfolio from market volatility.

You Don’t Need an Advisor If You Have a Simple Portfolio

Fact: Even if you have a simple investment portfolio, an advisor can help you achieve your financial goals.

An advisor can provide guidance on asset allocation, investment selection, and risk management. They can also help to keep you disciplined in your investing habits. If you’re not sure where to start or how to grow your wealth, an advisor can be a valuable resource.

Working With an Independent Advisor Is More Expensive

Fact: Working with an independent advisor may save you money in the long run.

Fees are just one part of the equation for wealth management. You also need to consider the quality of the advice and service you’re receiving.

Independent advisors are fiduciaries, which means they must act in your best interests. They’ll align their goals with yours and can help you save money on taxes and fees over time.

Ignore These Wealth Management Myths

The bottom line is that there are many wealth management myths circulating today. It’s important to do your research and consult with a financial professional to get the facts before making any decisions about your personal finances. With the right information, you can make informed choices about your money and take control of your financial future.

If you’re interested in learning more about the financial industry, read our other articles on the topic. We have a wealth of information to help you get started on the path to financial success.