Financial Professionals are the most trusted source of financial advice with ‘advice’ from Financial Influencers (Finfluencers) coming in dead last.
Even though the meme stock crazes of the last few years inspired many young people to get excited about opportunities to build wealth, most people - including Gen Zers and Millennials - consider financial professionals to be the best source for advice they can trust. Other sources include spouses, family members, business news and friends.
According to the 2023 Northwestern Mutual (NW) Planning and Progress Study, two-thirds of Americans believe their financial planning needs improvement. Interestingly, 79% of Gen Z and Millennials agree with that statement. This may be due to the increased economic uncertainty seen in 2023. According to Tim Gerend of NW Mutual, “Many are taking action to plan and tapping advisors for help in an increasingly complex financial environment.“ Research from Cerulli Associates supports this, finding that investors are more willing to pay for advice due to the current macroeconomic turmoil.
What can a Financial Professional provide?
A Financial Professional can or should be able to provide expertise on everything from aligning the clients’ finances and investments with their values to suggestions for managing debt as well as providing updates to changes in tax codes and the effects on their personal financial plan.
In looking for a Financial Professional, people seek someone who understands where they are in their life stage as well as what their financial goals are. Investors want to know that their advisor is offering customized solutions to support their personal needs and goals. Additionally, there is value added in working with a Financial Professional, i.e., a CFP certificant vs. simply a Financial Advisor.
People also place value on a long track record of experience. Gerend says that people form long-term relationships with their advisors lasting 20, 30 or more years.
The NW Mutual study further concluded that working with a Financial Professional provides higher levels of confidence across a wide range of areas, including being prepared for unplanned expenses, being able to retire comfortably when the time comes and, of course, achieving long term financial security. Investors are also able to tolerate a higher level of financial risk when working with a Professional. This is because the Professional has a high-level view of the clients’ financial picture, a long-term view of economic cycles and, as a professional, can keep the emotions out of any discussion.
Sources: Financial Planning, Barron’s
As a full-service Financial Professional, I can help guide you to an investment plan that is mindful of your personal considerations as well as your financial ones.
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