Dear DTA,
I’m wondering if I should hire a financial adviser. I have a little bit of money. I want to safely grow my nest egg.
-Pat E.
Hi, Pat.
Thanks for writing in.
Your time and readership is very much appreciated, which is why I’m taking the time to reach back out to you today.
That’s a great question. I’ll do my best today to give you some perspective on this subject.
Before we get started, I want to leave you with a very important adage that I always keep in mind:
Nobody cares more about your money than you do.
Not your financial advisor. Not your family or friends.
Nobody.
Once you accept this basic truth, you’re better prepared to move forward.
Now, I’m not saying that hiring a financial advisor is a bad idea. I’m not saying financial advisors are bad people.
What I’m saying here is, you’re more incentivized than anyone in this world to responsibly manage your money.
Moreover, I also wholeheartedly believe a financial advisor is unnecessary for most people.
Successful long-term investing is actually quite simple and boring. Almost anyone can become a successful investor.
People like to make it a complicated subject, but the best methods for growing wealth tend to be very straightforward.
Any strategy that sounds incredibly complex is probably just going to make you poorer. Or it’s complex because someone is trying to sell you on why you need them to manage your money for you.
I’m going to share some resources with you that I believe will open your eyes and show you how easy this can be.
Then it’ll be up to you on whether or not you need a financial advisor.
I can tell you that I don’t have an MBA or economics degree. Nobody formally taught me investing.
Yet I was able to build a significant amount of wealth and passive income in a very short period of time.
In fact, I was able to go from below broke at 27 years old to financially free at 33.
I lay out exactly how I did that in my Early Retirement Blueprint.
A major aspect of the Blueprint, of course, is the investment strategy I’ve followed.
That strategy is dividend growth investing.
Dividend growth investing espouses simple and timeless investment principles.
This strategy involves buying shares in high-quality businesses that are producing growing profit and sharing a portion of that growing profit with their shareholders, via increasing cash dividend payments.
You hold those shares for the long term, reinvest that growing dividend income, and become very wealthy.
Now, I’ve been at it for a little less than 10 years. And I actually stopped aggressively investing three years ago because I had already achieved my main financial goal of financial independence.
But following this strategy has allowed me to build my FIRE Fund.
That’s a real-life and real-money dividend growth stock portfolio.
I live off of the five-figure and growing dividend income my portfolio generates for me, which is why I was able to quit my job and retire in my early 30s.
If a regular guy like me can do this with no financial advisor, I see no reason why anyone else can’t also do the same.
Of course, you have to build your foundation of knowledge. Knowledge is power.
To that end, make sure to read through fellow contributor Dave Van Knapp’s Dividend Growth Investing Lessons.
This series goes through everything you could possibly want to know about the strategy and how to use it to build your wealth and passive income. It’s the A-Z of DGI.
After you’ve educated yourself, it’ll be time to invest the money you’re able to save.
Fortunately, you’ll never be short on ideas.
The Dividend Champions, Contenders, and Challengers list has compiled invaluable data on more than 800 US-listed stocks that have all raised their dividends each year for at least the last five consecutive years.
It shouldn’t be a surprise to see so many blue-chip stocks on that list.
After all, it takes a great business to be able to produce the reliable and growing profit necessary to sustain reliable and growing dividend payments to shareholders. You can’t have the latter without the former. Not for long, anyway.
In addition, I personally take the time every week to highlight a compelling long-term dividend growth stock investment idea.
These stocks undergo a rigorous analysis and valuation process. And every report includes valuations from professional equity analysts, providing even more depth and validity.
I present these ideas every Sunday through the Undervalued Dividend Growth Stock of the Week series.
All of the resources I’m sharing with you today are totally free.
Compare that to a financial advisor’s fees, which I guarantee you will be nowhere near free.
Ultimately, it’s up to you to take the steps necessary to educate yourself, save your money, and make the proper investment choices. Even a financial advisor has a limited capacity there.
No matter what you decide, though, keep in mind the adage I spoke of earlier.
There’s just no way possible that a financial advisor will in any way care more about your money than you.
You work hard for your money.
Well, your money should also work hard for you.
Every dollar you send a financial advisor’s way is one less dollar working and building wealth for you.
Either way you go, I can tell you one thing for sure.
You must start today.
I wish you luck and success.
Jason Fieber
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Disclaimer: Jason Fieber is not a licensed financial advisor, tax professional, or stock broker. Please consult with a licensed investment professional before investing any of your money. If your money is not FDIC insured, it may decline in value. To protect the privacy of our readers, any names published in this article are under aliases. In addition, text may be edited, omitted or paraphrased for grammar or length.