Only 35% of Americans Work With a Financial Advisor. Here's Why You Should Consider One

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  • It's a big myth that financial advisors are only for the wealthy.
  • Working with one could be your ticket to less financial stress and an easier time meeting your goals.

It may be time to get the help you need.

These days, a lot of people are experiencing their share of financial stress. The stock market has been down considerably since the start of the year, and inflation has been driving living costs up to an increasingly unsustainable level. Throw in recession fears, and it's no wonder so many people are losing sleep over their finances.

If you're one of them, it may be time to hire a financial advisor to help ground you. There are many benefits to working with a financial advisor, yet only 35% of Americans have one, according to the most recent Northwestern Mutual 2022 Planning & Progress Study. And if you're among the 65% of people who don't have an advisor, it may be time to get one.

It's not a matter of age or wealth

You might think that you're too young to need a financial advisor, or that you don't make or have enough money to warrant hiring one. But actually, working with a financial advisor from a young age could make it more likely that you'll eventually achieve your goals. That's because your advisor can give you pointers on how to invest your money early on, as opposed to missing out on that opportunity.

And as far as money is concerned, many financial advisors don't have an asset-related minimum. So even if you only earn $60,000 a year and you only have $5,000 in savings to your name, you can still sign up to work with a financial advisor.

What can a financial advisor do for you?

A financial advisor can help you manage your financial concerns and help you work toward your goals simultaneously. Now, it's easy to argue that you can read up on investing strategies and try to do the same thing yourself. But remember, when you hire a financial advisor, you're getting the advice of an objective person who isn't emotionally invested in your success the same way you are. That could actually work to your benefit, because an advisor may be in a position to give you more level-headed advice.

Some of the things a financial advisor can help you with include:

  • Building a strong enough emergency fund to meet your needs and give you peace of mind
  • Opening a brokerage account and investing in it
  • Investing your IRA
  • Managing your different financial goals based on their timelines and your priorities (for example, balancing college savings for your kids with your retirement savings)

If you're currently not in the best shape financially -- meaning, you have little money saved, lots of debt, and no major assets of value -- then an advisor could help you improve your financial picture. And that could also change your outlook for the better.

How to find a financial advisor

If you're not sure how to go about finding a financial advisor, your best bet may be to simply ask the people you know for recommendations. If you have a friend, neighbor, or colleague who's pleased with the service they're getting, that's reason enough to give a specific advisor a try.

Of course, you'll want to ask the right questions when vetting advisors, such as:

  • What fees do you charge?
  • What experience do you have working with clients in a similar boat to mine?
  • How often will we meet to review our progress and goals?

But all told, working with an advisor could really work wonders for your financial picture. And so it's worth giving one a shot, especially if money-related concerns have been keeping you up at night.

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