Are you starting to wonder whether you need a financial advisor? Most investors work with a financial advisor at some point in their lives. Learn more.
Are you starting to wonder whether you need a financial advisor? If so, you’re not alone. Millionaire Corner research shows that most investors work with a financial advisor at some point in their lives.
What advantages do Millionaires see to working with a financial advisor? Click here to find out.
Some investors have long-standing and close working relationships with their advisors and receive holistic financial planning services. Others are prompted to seek out advice at certain life stages and transitions. Financial planners sometimes call the latter group “event-driven” investors. Millionaire Corner and the Financial Planning Association provide insights into situations that cause the event-driven to reach out to a personal financial planning expert:
· Retirement: Investors transitioning into retirement can often benefit from professional financial advice, according to the FPA, a membership organization for financial planning professionals. A Millionaire Corner survey conducted in February shows that the majority of investors in their 30s, 40s and 50s would contact an advisor for help with retirement planning. The share rises to 58 percent for investors closest to retirement – those in their 50s.
· Inheritance or Financial Windfall: Financial planning professionals can also assist investors receiving a large sum of money – whether it’s an anticipated inheritance or an unexpected windfall, according to the FPA. More than two-thirds of investors surveyed by Millionaire Corner in February would ask an advisor for help managing a windfall, and roughly half, managing an inheritance.
· Marriage and Divorce: Changes in marital status are more likely to prompt younger investors to seek out financial help, according to our research. Nearly 55 percent of investors ages 40 and younger indicate they’d reach out to an advisor for help preparing for a marriage or divorce:
· Parenthood: More than two-thirds of investors ages 40 and younger indicate the birth of a child would prompt them to contact a financial advisor, according to our research.
The financial well-being of children and grandchildren ranks among the top personal concerns of the investors at all wealth levels, even the richest.
Investors are also likely to reach out in the event of extreme market volatility, for help coping with changing tax and estate laws, or in the case of the death of a family member, according to our research. Smaller shares of investors would seek financial advice when buying a home or planning a giving strategy. The FPA notes that investors can also benefit from financial advice when faced with the challenges of caring for aging parents or a disabled child, funding education, and buying, selling or passing on a family business.
For information on selecting a financial advisor, see our new Find an Advisor service.