When something is important to you – anything from your plumbing to a medical procedure – you want to make sure it’s done correctly. In most cases, you hire a specialist. But when it comes to finances, most Americans are hesitant to get help from a professional. In fact, 62 percent don’t have a financial advisor of any kind.1
Instead of going it alone, consider the benefits of working with a financial professional. Here are a few reasons why having one makes good sense.
Finances don’t have to be stressful
According to research, most financially and emotionally confident people use a financial professional.2 When you couple that with research showing that 79 percent of working Americans have serious stress about their lives, with finances being a significant contributor to this anxiety, it’s clear there is a large disconnect between people’s beliefs and their actions.3 When you work with a financial professional, a main goal should be to lighten the stress associated with your personal finances.
Doing it yourself might not be the best option
Most people rely on their jobs to provide a financial foundation, including not only their salaries but also benefits like health insurance, disability insurance, life insurance, and a 401(k). When we took a look at American workers in our 2014 Workplace Benefits Study, we found that 40 percent of employees like to manage their benefits and personal finances by themselves. But these “Do-It-Yourselfers” are actually less likely to achieve success on many of their financial goals, like saving for retirement, than people who seek professional help.4
Other people may rely on your finances
If you have a family, you know that there are other people who depend on your income. And that can be stressful. The average cost of raising a child is $233,610.5 Then there’s college (if this is the path you choose). One year of college tuition currently costs anywhere from $9,650 to $33,480, depending on what type of institution you attend.6 On top of your everyday costs, you want to make sure your family is protected with products like life insurance and disability insurance. These products can be complicated, and a financial professional will work with you to make sure you have the right coverage for your individual situation.
Planning for retirement is important
One estimate puts the annual cost of living when you’re retired at $44,600.7 So if you live for 30 years in retirement, and compound the yearly amount by 3% to account for cost of living, you need to save up well over a million dollars to retire comfortably. Make sure you don’t get caught by surprise in your retirement years by planning accordingly now. A financial professional can advise you on retirement products that can provide guaranteed lifetime income for your fixed retirement expenses, such as annuities, and help you plan for a retirement you can enjoy. It’s important to build a holistic plan with a professional, who can share the variety of tools that you can tap for income in retirement.
A financial professional can help you plan for the future, understand how to protect yourself, and ease the stress and time it takes to manage your personal finances. The relief that comes with financial confidence is powerfully rewarding, which makes it far easier to continue making optimal financial choices once you’ve taken that important first step.
1, 2 Michael S. Fischer, “Most Americans Get No Financial Advice: Survey,” June 21, 2016
5 Kathryn Vasel, “It costs $233,610 to raise a child,” Jan. 9, 2017
6 COLLEGEdata. “What's the Price Tag for a College Education?” 2017
7 Brian Stoffel, “Here's What the Average Retired American's Budget Looks Like,” Jan. 25, 2016