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Most Non-Advised Want Advisor, But…

A new survey finds that most investors who don’t currently work with an advisor are interested in doing so in the future — but they are worried about the cost — and they aren’t sure exactly how an advisor could help.

According to the survey of more than 1,000 401(k) participants by Financial Engines, 54% of retirement investors who do not currently work with a financial advisor are interested in doing so in the future, including 44% of “do it myself” investors.

That said, the top reasons keeping investors from working with an advisor now are concerns about:


  • 46% - cost

  • 36% - perceived inadequacy of their assets

  • 26% - not being sure how a financial advisor could help

  • 23% - prefer a “do-it-myself” approach to their finances

  • 16% - do not trust financial advisors in general

  • 16% - not sure how to find a financial advisor

  • 14% - do not need one because my finances are simple


However, different subgroups deviated from the average response. For example, 57% of retirement investors with lower levels of assets (below $10,000) stated “it is expensive” while one in three investors with asset levels above $500,000 stated “I do not trust financial advisors in general,” and 60% of this asset group preferred a “do-it-myself approach.” Just 1 in 10 investors age 18 to 34 stated that “I do not trust financial advisors in general,” compared with 16% of investors overall and 33% of wealthy investors.

Advisor Criteria Ranked

The vast majority (88%) felt that having a financial advisor who is “experienced” was very or somewhat important, while nearly as many — 82% — believed it was very or somewhat important that their financial advisor hold a “recognized financial license and designation.” Roughly two-thirds thought it was very or somewhat important that their financial advisor be part of a well-known financial or investment company.

As for what they hoped to get from their integrated financial advisory service, the following were deemed very or somewhat important:


  • 71% - Determining how much you need to save in order to reach your retirement goal

  • 69% - Developing a plan for how to convert your savings into income once you retire

  • 69% - Evaluating your overall financial wellness

  • 66% - Assessing your investment risk tolerance and generating an overall investment strategy

  • 65% - Optimizing Social Security claiming to maximize your benefits

  • 64% - Managing all of your investment and retirement accounts from work and outside of work

  • 64% - Managing the investments in your current workplace retirement plan

  • 63% - Determining the best time to retire, stop working

  • 63% - Planning for healthcare expenses in retirement

  • 53% - Managing debt and budgeting

  • 42% - Saving or making investments for a child’s college education


However, once again, various subgroups deviated significantly from the overall average for each topic; the youngest investor group age 18 to 34 placed high value on getting help with several of these topics including retirement and financial wellness issues such as budgeting. On the other hand, investors with lower asset levels and incomes placed a higher value on help with financial wellness topics such as managing debt and saving for a child’s education and were more likely to want help with workplace retirement plans.

Retirement investors with a relatively high level of assets disproportionately valued getting help with retirement income planning. Investors not currently working with an advisor who are interested in doing so in the future placed more value than the average in getting help on every topic.

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