U.S. working with financial advisor 2022 | Statista (2024)

FAQs

What percentage of Americans work with a financial advisor? ›

It is estimated that in the United States, 35% of people have a financial advisor. This indicates that almost one for every three of the population has sought advice from a professional financial advisor in managing their finances and investments.

Not everyone needs a financial advisor, especially since it's an additional cost. But having the extra help and advice can be paramount in reaching financial goals, especially if you're feeling stuck or unsure of how to get there.

Financial advisors provide expertise to help individuals and organizations make smart money decisions. Estimates vary, but approximately 300,000 financial advisors work in a range of industries and in every state and city.

Potential negatives of working with a Financial Advisor include costs/fees, quality, and potential abandonment. This can easily be a positive as much as it can be a negative. The key is to make sure you get what your pay for.

The wealthy also trust and work with financial advisors at a far greater rate. The study found that 70% of millionaires versus 37% of the general population work with a financial advisor.

But, if you're already working with an advisor, the simplest way to determine whether a 1% fee is reasonable may be to look at what they've helped you accomplish. For example, if they've consistently helped you to earn a 12% return in your portfolio for five years running, then 1% may be a bargain.

A financial advisor is worth paying for if they provide help you need, whether because you don't have the time or financial acumen or you simply don't want to deal with your finances. An advisor may be especially valuable if you have complicated finances that would benefit from professional help.

But even the best financial advisors are at the whim of the market. Most professional investors who try to beat the market actually underperform it over a given time period. And those who do manage to outperform the market over one time period can rarely outperform it again over the subsequent time period.

That position will allow other advisors in the area to go after your clients and pick them off with their marketing efforts. 5. The Statistics: 80-90% of financial advisors fail and close their firm within the first three years of business. This means only 10-20% of financial advisors are ultimately successful.

According to various studies and publications, the average age of financial advisors is somewhere between 51 and 55 years, with 38% expecting to retire in the next ten years.

Is there a future for financial advisor? ›

And the wide scope of technology tools supporting advisors to shift into providing more client-centric services makes this new era in the future of financial advice possible! The changing patterns in how financial advice is delivered can be compared to the similar trends seen in the evolution of medicine. Dr.

Cerulli found adviser headcount remained largely unchanged in 2023, with only a 2,706 increase in 2022. Previous Cerulli research revealed last year brought a 1.9% decline in the total financial adviser headcount.

Lack of perceived need. Many consumers share the perception that they simply don't need a financial planner. They may receive financial advice from a family member or friend; in some cases, they feel they've already achieved their goals and thus don't require advice.

Being a financial advisor can be highly stressful due to the responsibility of managing clients' financial futures, market volatility, and the need to make crucial decisions under pressure. Stress levels can vary based on individual clients and market conditions.

The survey shows that 8% of adults had received financial advice in the previous 12 months. This figure is inching up slowly over time; up two percentage points since 2017.

The number of clients a financial advisor has depends largely on the advisor. Again, a typical client count is anywhere from 50 to 150 but there are several variables that can influence the actual number. They include the advisor's niche and the type of clients they serve, as well as how they work.

According to Smart Asset, only 11% of millennials use financial advisors regularly. Only about a third of financial advisors actively target millennials. That means many millennials need financial advice and plenty of opportunities for financial advisors.