3 Common Misconceptions About Working With a Financial Planner

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Sifting through the endless amount of financial planning information online makes it hard to tell the difference between myth and fact.

Misconceptions and assumptions can also prevent people from taking critical steps that could significantly improve their financial confidence and protect their life's work.

Professional financial advice can help alleviate the risks of misconceptions and misplaced overconfidence and turn future wishes into attainable goals for retirement security.

It's a global issue

Prudential's 2025 Global Retirement Pulse Survey, which surveyed more than 4,000 "mass affluent adults" in the U.S., Brazil, Mexico and Japan, uncovered beliefs that aren't rooted in reality.

For example, while 87% believe they'll be able to cover essential expenses in retirement, an alarmingly small number have a written plan, withdrawal strategy or have considered such rising costs as inflation, health care and medical expenses.

The Pulse Survey defined the mass affluent as those actively preparing for retirement with more than $100,000 in investable assets.

Here are the top three myths I've heard about working with a financial planner:

Myth No. 1: Only wealthy people hire financial planners

The truth: Financial planning isn't just for the ultra-rich. It's often more critical for those into the mass affluent category — people with moderate wealth who need to make every dollar work harder.

According to the Pulse Survey, only 41% of respondents currently seek professional advice from a financial adviser, leaving the majority without expert guidance.

When working with clients across different income levels, it's clear that opportunity exists across the spectrum.

Wealthier segments often have more flexibility to recover from mistakes due to higher cash flow, but for others, such as the mass affluent demographic, investment strategies and planning from the start are essential.

Why does this matter? Without a clear plan, people risk falling short of their retirement goals. The Pulse Survey revealed that 45% of people can't picture how to get to retirement, and 61% believe they might not be able to fully retire.

A financial planner can help bridge that gap by creating a realistic roadmap tailored to goals and resources.

Myth No. 2: AI financial advice is enough these days

The truth: While AI tools can be helpful for research, it can't replace the personalized, holistic approach of a human adviser. The Pulse Survey found that less than half of mass affluent respondents trust AI advice as much as human advisers, and trust for AI is lowest in the U.S. — only 23% compared with other countries.

Try thinking of AI as one of the instruments in your financial-planning toolkit. It can spark great ideas, offer topline budget sheets and do math quickly. But does it really have the full picture? Can it provide comprehensive planning that accounts for your past selves' financial decisions, present needs and future wants on a human level?

Financial advisers are uniquely adept at considering the full picture. Life changes, often very quickly. A financial adviser can help spot these issues and opportunities and set their clients up for the best "now" and "later."

I recently spoke with a client who used AI to research splitting an inherited IRA into diversified investment strategies. The AI plan had elements of what was necessary, but it didn't quite hit the mark.

After considering nuances, tax implications and personal future goals the client hadn't thought of yet, we were able to put them in a much better overall investment position.

Bottom line: AI can complement your planning process, but I don't think it should replace professional advice — especially for complex decisions that could have lasting impacts on your financial future.

Myth No. 3: Getting financial advice is time-consuming and stressful

The truth: Working with a good financial planner should feel empowering, not overwhelming or burdensome. Find someone who emphasizes flexibility and personalization, taking preferences into account every step of the way.

Some might seek high-level guidance, while others like to analyze detailed scenarios, for example. A financial planner's goal should be to make the process fit the need, not the other way around.

The benefits speak for themselves. The Pulse Survey found that 86% of people who work with an adviser feel confident about covering nonessential expenses in retirement, compared with 68% of those without an adviser. That confidence can translate into peace of mind and better decision-making.

Why these myths persist — and why they matter

At times, it feels as if we live in a "help-avoidance culture." People are willing to help others but often hesitate to seek help themselves. This reluctance can lead to missed opportunities for retirement security and future financial independence.

Advisers exist to provide clarity and guidance, but they can only help if people take the first step.

Whether you're planning for retirement, managing investments, or simply trying to make sense of your financial options, partnering with a financial planner can make all the difference. Don't let misconceptions get in the way — your financial future is too important.

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.