November 21, 2014 Fact of the Day: Most investors are hesitant to hand over control of assets
Did you know that most investors control most of their assets themselves and only rely on an advisor for a small percentage of their assets?
Investors with less than $1 million indicate that they control 59 percent of their assets entirely on their own. They do use an advisor to control the rest. For 28 percent of their assets they will listen to the recommendations of their advisor but make the decision on their own. For about 15 percent of their assets they do rely upon their advisor for advice. Older investors and wealthier investors are more likely to allow financial advisors to control more of their investment decisions.
How comfortable are you with making investment decisions? Most investors weigh what they believe the potential cost of using an advisor might be against what they believe the expertise of their advisor may be. You may potentially have more expertise in some types of investments….such as real estate…than an investment advisor….however, in many cases, financial advisors have more access to information about different types of investments than you might have. They also generally have more time to research investments since that is their job. Financial advisors also have the benefit of experience.
While many are hesitant to use investment advisors, it’s important to ask yourself whether you have the time and expertise to devote to your assets. Remember…it may be your retirement that we’re talking about!