Debunking five myths of financial advice

When it comes to money, many people are wary of handing over control of their assets to someone else. The “do-it-yourself” approach is widespread, with investors often deciding to dive in on their own—without fully considering the consequences for their wallets.

In reality, working with a professional who can guide, support, and advise is often essential for long-term success in the investment world. So why do so many investors hesitate to rely on a specialist?

Experts say financial advice is still clouded by misconceptions that, rather than helping, limit people’s ability to reach their goals.

According to MAPFRE Gestión Patrimonial (MGP), many of these myths stem from misunderstandings about who financial services are for, what role advisors actually play, and the real value they bring. This article sets out to dispel some of the most common myths.

Myth 1: “Financial advisors are only for the wealthy”

One of the most widespread misconceptions is that financial professionals are reserved for those with large fortunes. “Many people associate financial advice exclusively with high-net-worth individuals because there’s a perception that managing money is easy when you don’t have much capital,” explains MGP.

"But this belief actually limits people’s ability to reach their full financial potential.” The firm emphasizes that what matters most isn’t how much money you have, but whether you set clear goals and follow strategies to reach them efficiently. “The people who benefit most from financial advice are those looking to take a meaningful step forward in how they manage their assets—regardless of size,” MGP notes.

In reality, a wide range of individuals stand to gain from working with an advisor: young professionals just starting out, families focused on protecting their future, and individuals preparing for retirement. Ultimately, it’s not about how much money you have, but how you manage it.

Myth 2: “Managing my own investments is just as effective”

Self-managing finances may sound appealing, but it often leads to repeated mistakes. As MGP points out, investing without professional advice typically means making decisions shaped by biases such as “trends, social media tips, or past experiences.”

According to the firm, the most common mistakes among do-it-yourself investors include:

• Lack of diversification: Concentrating resources in just a few assets significantly increases risk.
• Emotional decisions: Buying impulsively during market highs or selling too quickly in times of panic.
• Chasing trends without analysis: Investing in popular assets without understanding their real potential or risks.
• Poor planning: Acting without clear goals or defined strategies.

A professional advisor not only helps manage risk but also enables investors to spot opportunities and adjust their strategies as market conditions evolve.

Myth 3: “Financial experts are just salespeople”

Another common misconception is confusing a financial advisor with a salesperson pushing investment products. MGP stresses that the difference is substantial: “While a salesperson’s sole aim is to promote their products, a financial advisor focuses on building lasting relationships based on trust and on deeply understanding each client’s individual needs.”

For MGP, true financial advice is defined by transparency, personalization, ongoing support, and alignment between the client’s goals and the strategy designed to achieve them.

Myth 4: “Financial advice is too expensive”

Many people assume that hiring a professional comes at a high cost that cuts into returns. In reality, it’s better understood “as an investment in itself.” A good advisor helps clients avoid costly mistakes, optimize taxes, and improve efficiency in every decision.

According to MGP, financial advice should be seen as a tool to protect and grow wealth, not as an added expense.

Myth 5: “I only need advice during a crisis”

Another common mistake is believing that advice is only useful in times of volatility or economic uncertainty. In practice, an advisor’s role is ongoing—helping to plan for the long term, review goals, adjust strategies, and provide support at every financial stage.

Having a professional by your side during calm periods is just as important as during crises, because it allows you to build a solid foundation and be ready to seize opportunities when they arise.

Which myth is the most dangerous?

For MGP, the most harmful myth is really a combination of all the above: the belief that financial advisors are unnecessary salespeople and that managing money alone is enough. “This set of misconceptions limits people’s ability to achieve their financial goals and build lasting wealth,” the firm warns.

The best way to dispel it, they say, is to help investors understand that advice isn’t a cost—it’s an investment. “We create personalized strategies to protect wealth, plan for retirement, and optimize investments,” the MGP team concludes.