Last Updated on April 23, 2026 by Hemant Beniwal
“An expert is someone who has made all the mistakes which can be made in a very narrow field.” – Niels Bohr
Every year I meet investors who have been managing their own finances for 10-15 years. Most have some mutual funds, an insurance policy or two, a home loan, and a vague retirement plan. When I ask them what their retirement corpus target is and whether they are on track, most cannot answer the question.
They are not financially illiterate. They read about finance. They follow markets. They have opinions on funds and sectors. What they lack is not knowledge – it is an integrated picture of their financial position relative to their specific goals.
The reasons most people give for not engaging a financial planner are consistent and worth addressing directly.
⚡ Quick Answer
The five most common reasons people avoid financial planners are: the fee feels like an unnecessary expense, the belief that self-management is sufficient, distrust of advisors who push products, the assumption that planners are only for the wealthy, and reluctance to share financial information with strangers. All five are understandable – and all five miss the real question, which is not “can I manage myself?” but “what is the cost of managing myself sub-optimally over 25 years?”
Objection 1: “It Is an Unnecessary Expense”
Financial planning fees range from Rs 15,000 to Rs 1 lakh per year depending on the advisor and the complexity of the engagement. For someone earning Rs 3-5 lakh per month, this is a small fraction of income. But it still feels like an avoidable cost – because the value is invisible until you have it.
The relevant comparison is not “what does advice cost?” but “what does the absence of good advice cost?” Research consistently shows an annual behavioural gap of 1-2% between what markets return and what the average self-directed investor actually receives – because they buy high, sell low, hold the wrong products, and miss tax optimisation opportunities. On a Rs 1 crore portfolio, 1.5% is Rs 1.5 lakh per year. That is the cost of not having professional guidance, compounding silently every year.
I have a financial planner myself – even after 25 years of advising others. The reason is simple: I am too close to my own financial decisions to be objective about them. Everyone is.
Objection 2: “I Can Do It Myself”
This is the most common objection, and the most worth examining honestly. The question is not whether you have the intelligence or the discipline – many self-directed investors have both. The question is whether you have the time, the complete knowledge base, the emotional detachment, and the systematic process to manage an integrated financial plan covering investments, insurance, tax planning, estate planning, and retirement withdrawal strategy simultaneously.
Consider what financial planning actually involves: maintaining appropriate asset allocation across multiple goals with different timelines, reviewing insurance adequacy annually, optimising between old and new tax regimes, planning for retirement corpus drawdown (not just accumulation), ensuring estate documents are current, and making decisions without emotional interference during market extremes.
Most self-directed investors manage one or two of these well and neglect the rest. The typical gap is not in investments – it is in insurance (systematically under-insured), tax planning (done in panic in March), and retirement withdrawal planning (rarely considered at all until retirement is imminent).
The question is not “can I manage my own money?” The question is “what is the true cost of managing it sub-optimally?”
RetireWise builds integrated financial plans for senior executives who want more than product recommendations – they want a complete picture of where they stand and what it takes to get where they want to go.
Objection 3: “Advisors Push Products, Not Advice”
This is a legitimate concern – and historically, a well-founded one. Many people who call themselves financial advisors in India are product distributors: bank relationship managers, insurance agents, and mutual fund agents whose income is linked to the products they recommend. Their incentive is to recommend what pays them most, not what serves you best.
The solution is not to avoid all advisors. It is to choose the right kind. SEBI-registered Investment Advisers (RIAs) operate under a fiduciary obligation – they are legally required to act in the client’s best interest. SEBI RIAs charge fees for advice rather than earning commissions from product manufacturers. The category exists precisely to address the conflict-of-interest problem in financial advice.
Before engaging any financial advisor, ask two questions: Are you registered with SEBI as an investment adviser? How are you compensated? The answers reveal whether the incentive structure is aligned with your interests.
Objection 4: “Financial Planners Are Only for the Wealthy”
This is a misconception that is worth correcting directly. Financial planning is most valuable for people who have not yet built their wealth – because it is the planning that determines whether wealth is built. A 35-year-old with Rs 20 lakh in savings and a Rs 2 crore retirement goal needs a plan more urgently than a 60-year-old with Rs 3 crore who has already arrived.
The decisions that determine financial outcomes are made in the accumulation years – in the 30s and 40s – not in retirement. How much you save, how you allocate between goals, whether your insurance is adequate, and whether your tax planning is systematic: these decisions compound over 25 years. Getting them right early produces dramatically better outcomes than getting them right at 58.
Objection 5: “I Don’t Want to Share My Financial Information With a Stranger”
This is understandable. Financial information is private. Sharing income, assets, liabilities, family obligations, and estate details with an advisor requires a level of trust that takes time to build.
The practical approach: start with a limited initial engagement. Many advisors offer a one-time financial review or a specific goal analysis before any ongoing relationship begins. This lets you evaluate the quality of the advice and the professionalism of the advisor before sharing your complete financial picture.
The information shared with a SEBI-registered adviser is also subject to confidentiality obligations under SEBI regulations. It is not more exposed than the information you share with your bank, your employer, or your tax consultant.
When You Genuinely Do Not Need a Financial Planner
There are circumstances where the value of professional planning is lower. If you have recently started earning with no dependants and simple finances, the basics – term insurance, health insurance, SIP in 2-3 diversified equity funds, emergency fund – can be set up without professional guidance. If you are an expert in financial planning yourself and can manage your decisions without emotional interference, self-management may be appropriate.
For most others – especially senior professionals with complex income, multiple goals, significant assets, and approaching retirement – the cost of professional advice is small relative to the improvement in outcomes it typically produces.
Read: 10 Questions to Ask Before Managing Your Own Investments
The most expensive financial advisor is not the one who charges a fee. It is the one you do not have – whose absence you pay for silently, in suboptimal decisions, missed tax savings, and inadequate insurance, for 25 years.
DIY = Destroy It Yourself. At least, for most people. Know which one you are.
What would a complete picture of your financial position actually show?
RetireWise starts with exactly that question – a full review of where you are, where you need to go, and what it takes to get there. No product pitch. Just the honest picture.
Your Turn
Which of the five objections above resonates with you – and has your position on financial advice changed after reading this? The honest answer often reveals more about financial readiness than any checklist. Share in the comments.