A line in a post on LendingClub.com, quoting The Millionaire Next Door, mentions the tendency of most millionaires to use financial advisers and tax consultants. This stuck out to me because I do my own taxes and make my own investing decisions. It’s not without help, of course, the help is just free – or at least much cheaper than paying a professional.
I use TurboTax, for example. I perform my due diligence and take advantage of as many deductions as I can locate (case in point). I overhear accountants I know recommend in casual conversation various expenses to be sure and deduct, and my first thought is invariably, "TurboTax covers that." Is paying a professional really going to save me enough in tax obligation above my current method to make it worth the expense?
My issue with financial advisers is the same. Once again, I perform my due diligence in determining the best place to stick my money (e.g., here, here, here or here. Or, here. Or, here and here. Oh, and here. Whew…). I have prioritized my savings into Roth IRAs, a 401k, and high yield checking and savings accounts. I’ve aligned the investment plans of the former two with my long-term goals. Is there really that much more out there for a financial adviser to do? Once again, he needs to make me more money than he charges – up and above what I already make now – and still stay aligned to my investment goals.
So, call me cheap, but I’m skeptical. Does anyone have some personal experiences to prove me wrong?