Did you know that 86 percent of Americans that receive financial advice take actions they describe as positive, and two-thirds of those feel more confident about their finances?
Of course, we're not surprised by this -- after all, we're quite familiar with the many benefits offered by the services wealth advisors provide -- but unfortunately, a 2014 TIAA-CREF study of financial trends in the U.S. also found that 65 percent of the 1,000 adults surveyed aren't interested in financial advice. Whether these individuals don't know which investment professionals to trust, consider investment firms' fees to be too high, don't have the time to find the right advisor and seek guidance, or simply lack an understanding of the many benefits that wealth advisors' services can impart, this lack of attention to financial matters is concerning.
Why? Because financial planning is crucial, whether you're seeking retirement advice, asset management solutions, or strategic wealth planning. People generally make better financial decisions when they receive advice from a trusted wealth advisor.
From paying down debt to saving for a comfortable retirement and establishing an emergency fund, here's why you might just need more investment planning guidance than you think.
Personal Wealth Management: How Can it Benefit You?
A 2014 survey by Deloitte examined employee engagement in defined contribution plans; this study also found low levels of interest and/or engagement. Despite the fact that retirement savings account balances have reached historically high levels, almost 25 percent of employees don't participate. Like the findings of the TIAA-CREF study, the Deloitte study found that this lack of engagement was largely due to a lack of knowledge about the benefits of this type of retirement planning.
As the economy continues to recover and grow, it's time to pay more attention to investment planning and utilize the financial planning tools that are available, such as maxing out your 401k, Roth or 403b retirement plan contributions and taking advantage of employer contributions to your retirement plan. Speak with a retirement investment advisor about how to best get on track to meet your retirement goals.
Turning to Friends or Family Instead of Investment Professionals
Studies also indicate that many Americans rely more on friends or family for financial advice, rather than turning to investment professionals. Unfortunately, this may lead to biased or sub-par financial advice that can hinder an effective financial plan. In contrast, a professional wealth advisor acts as a neutral party who can provide personalized advice that's in the investor's best financial interest. A professional will also likely have a higher level of education and training in the industry.
Similarly, others may assume that they don't need the services of an investment professional because they haven't amassed enough assets. In reality, working with a financial planning consultant at a time when financial habits are being formed is ideal, as professional advice can help in the formation of positive saving routines and behaviors.
Regardless of why many Americans don't seek or receive professional financial advice, the benefits of taking the time to meet regularly with a wealth advisor are significant. Wealth advisors help investors create a comprehensive financial plan that includes retirement planning and investment management solutions that can positively impact their future financial well-being.