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Research suggests this could potentially double your retirement savings

A financial advisor can help you make smart money moves. | Photo by SmartAsset

With a volatile stock market, potential recession alerts, and high inflation, investors are (understandably) looking to safeguard their assets.

The move to potentially consider? Professional financial advice. Investment firm Charles Schwab’s research shows investors who work with a financial advisor have saved nearly twice as much for retirement as those who don’t.¹

Could financial advice potentially double your retirement savings?

Analysts at Schwab dug into the data from their customers’ Personal Choice Retirement Accounts® (PCRAs), self-directed brokerage accounts offered within employer sponsored retirement plans.

Here are the average PCRA account balances the study found for the fourth quarter of 2022:

Plan participants who work with financial advisors: $459,438
Non-advised participants: $236,206¹

Notably, advised participants had an average balance nearly double that of non-advised account holders.

Why work with a financial advisor?

Working with a financial advisor could help you gain access to a wealth of potential benefits, including their intricate knowledge of financial markets, access to exclusive investment vehicles, and their ability to navigate complex tax and estate planning regulations. All of which could help expand your portfolio, mitigate risk and help alleviate financial stress.

While the idea of seeking professional advice may seem like an unnecessary expense, the cost of not working with a financial advisor could be far greater.

A 2021 AdvisoryHQ study found that the average AUM fee for a $50,000 account was about 1.18% (or just $590) with average fee percentages declining as portfolio balances increase. In fact, the study found that the average annual advisor fee for a $1 million portfolio was just $10,200.²

How to find a vetted financial advisor who serves your area:

Many Americans have never enlisted the help of a financial advisor as they don’t know where to start. SmartAsset created a no-cost quiz that helps to simplify the time-consuming process of finding a financial advisor. A short questionnaire helps match you with up to three vetted financial advisors serving your area. Advisors are rigorously screened through a proprietary due diligence process and legally bound to work in your best interest.

It’s never too late to work toward a more comfortable retirement.

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Are you prepared for the retirement you want?

Try this simple quiz to get matched with up to three vetted financial advisors, each legally bound to work in your best interest.

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Sources:

1. “SDBA Indicators Q4 2022 Report”. Charles Schwab. (March 2023).

2. “What are the Average Financial Advisor Fees & Investment Fees Being Charged in 2021?”, AdvisoryHQ (July 2021) The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of your future results. Please follow the link to see the methodologies employed in the AdvisoryHQ study.

This article may potentially include a firm or firms that have a business relationship with SmartAsset, in which SmartAsset is compensated for lead referrals or cost per engagement. SmartAsset is not a client of the aforementioned firms. SmartAsset did not receive compensation for including any of the firms in the aforementioned article.

This article contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firms mentioned in this profile. The matching tool does not include all available advisors and firms and matches based on specific criteria (investable assets, geography, and willingness to work with a remote advisor).

This is not an offer to buy or sell any security or interest. All investing involves risk, including loss of principal. Working with an adviser may come with potential downsides such as payment of fees (which will reduce returns). There are no guarantees that working with an adviser will yield positive returns. The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest.

SmartAsset Advisors, LLC (“SmartAsset”), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S. Securities and Exchange Commission as an investment adviser. SmartAsset’s services are limited to referring users to third party advisers registered or chartered as fiduciaries (“Adviser(s)”) with a regulatory body in the United States that have elected to participate in our matching platform based on information gathered from users through our online questionnaire. SmartAsset receives compensation from Advisers for our services. SmartAsset does not review the ongoing performance of any Adviser, participate in the management of any user’s account by an Adviser or provide advice regarding specific investments.

We do not manage client funds or hold custody of assets, we help users connect with relevant financial advisors.

SmartAsset.com is not intended to provide legal advice, tax advice, accounting advice or financial advice (Other than referring users to third party advisers registered or chartered as fiduciaries (“Adviser(s)”) with a regulatory body in the United States). SmartAsset is not a financial planner, broker or tax adviser. The Service is intended only to assist you in your understanding of financial organization and decision-making and is broad in scope. Your personal financial situation is unique, and any information and investing strategies obtained through SmartAsset.com may not be appropriate for your situation. Accordingly, before making any final decisions or implementing any financial strategy, you should consider obtaining additional information and advice from your accountant or other financial advisers who are fully aware of your individual circumstances.

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