Americans Are 16.9% More Confident in Their Financial Plan With an Advisor, per ComparisonAdviser Study

ComparisonAdviser shares a recent study that investigates the impact of a financial advisor on people's confidence in their financial plan.

In its latest study, ComparisonAdviser found that Americans who paid for financial advice were 16.9% more confident in their financial plan than those who didn't. The purpose of the article is to investigate the impact a financial advisor has on a client's confidence vs. those who manage their money by themselves.

Read the study here: https://comparisonadviser.com/news-and-studies/financial-advice-confidence-study/

First, the study analyzed data from a survey, in which respondents of various age groups were asked whether they've paid for financial advice. Notably, the percentage of people who've met with an advisor increases as people age, going from 5.6% for those in their 20s to 47.9% for individuals age 60 or older. The study suggests that, as people get older, they may require a financial advisor more due to the increasing likelihood of significant financial hurdles, such as marriage, divorce, planning for long-term care, or retirement.

Additionally, the study assessed the confidence level of respondents, asking them, on a scale of one to five (five being most confident), how confident they are in their financial plan. The article displays the results as a difference in confidence between those who did pay for financial advice versus those who didn't. Interestingly, while older age groups are more likely to have seen an advisor, they're only 11.1% more confident than people who didn't. This is much lower than participants in their 20s or 30s who met with a professional, with them being 22% and 19%.

Sean Canonica, the study's author and Senior Finance Writer at ComparisonAdviser, explains that older respondents may be less confident due to "worry over important financial issues that people often face later in life, such as retirement or divorce." Similarly, the article features commentary from Anthony DeLuca, CFP, CDFA, an expert contributor at RetireGuide.com, in which he says that older clients may be "jaded by the results" of previous financial plans, giving them a more negative outlook. This is in contrast to younger clients who, as the piece points out, may be more accepting of an advisor's recommendations.

Finally, the study examines the value of a financial advisor by including insights from both DeLuca and Andrew Bellak, a private wealth advisor and partner at Perigon Wealth. Each shares insights from their experience in the industry, explaining that advisors can boost their clients' confidence if they work to create both intangible and monetary value.

Source: ComparisonAdviser