It’s hard to talk about money. Money is a sensitive topic, and being honest with yourself (and others) about your financial situation can feel awkward or even embarrassing.
But knowledge is power, and if you could use little help in the financial planning department, you’re not alone. According to a 2022 Northwestern Mutual study, over half of US adults think their financial planning skills need improvement — and yet, just a third of them work with a financial advisor.¹
Why? While financial advisors can never guarantee good returns and financial success, hiring one is still a major decision that can impact the financial trajectory of the rest of your life. It may seem daunting to find one, but research suggest that those who work with a financial advisor feel more at ease about their finances and could end up with 15% more money to spend in retirement.²
What can a financial advisor do for me? Let’s pretend we have $500,000 to invest — a good chunk of change. According to a 2019 Vanguard study, here’s what that investment would be worth after 25 years:
- $1.69 million with self-management alone
- $3.4 million with a financial advisor (read: 2x more)
In other words, an advisor-managed portfolio would average 8% annualized growth over a 25-year period, compared to just 5% from a self-managed portfolio.³
Okay... but where and how do I find one? SmartAsset’s no-cost tool simplifies the time-consuming process of finding a financial advisor. Their short quiz helps match you with up to three fiduciary financial advisors, each legally bound to work in your best interest.
Even better, the whole process takes just a few minutes, and you can typically be instantly connected with an expert for a free retirement consultation so you can compare and decide on the best match for you.
Ready to know what to look out for? Check out SmartAsset’s list of seven mistakes to avoid when choosing an advisor to help you find peace of mind — and potentially save your family years of stress. |
