Why Work with a Financial Advisor?

If you’re on the fence about whether to work with a Financial Advisor, you’re not alone. Although Americans say their financial planning needs improvement and that having a Financial Advisor boosts confidence—only 37% are working with one.[1]

Those who do work with Advisors are looking for:[2]

• professional expertise
• a long-term plan to help them stay on track to achieve their financial goals
• help reducing financial anxiety
• guidance to keep organized

As for the why, a Morningstar study of more than 3,000 people found that the two most cited reasons for hiring an Advisor were:[3]

1. 32% – discomfort handling financial issues
2. 32% – specific financial needs

The Role of the Financial Advisor

Acting as a trusted resource, a Financial Advisor’s role is to provide expert guidance and advice to help you make informed decisions that align with your financial objectives and risk tolerance.

A Financial Advisor will assess your financial situation, including your income, expenses, assets, and liabilities; help build your investment portfolio; and work with you to develop customized strategies to help you achieve short- and long-term goals, such as:

• saving for retirement
• planning for college education
• saving to buy a home
• determining how to pay off debt
• starting a business
• estate planning
• investing
• tax planning

Another part of an Advisor’s role is to help you create an investment strategy—factoring in your risk tolerance and ensuring you diversify your portfolio to reduce risk.

Your Advisor will regularly review and adjust strategies as your circumstances or market conditions change. And they’ll offer objective advice to help you navigate complex financial decisions.

Think You Can Go It Alone?

As for the nearly 63% of people not working with a Financial Advisor, they may be wasting valuable time—and potentially losing money—by:

• researching and comparing financial products they’re unfamiliar with
• relying on insight, gut instincts, or emotions to make financial decisions
• experiencing “analysis paralysis” by overthinking everything and failing to make a decision

In addition, those who don’t work with an Advisor may be missing out on access to an Advisor’s center of influence (COI), connections they can utilize for subject matter expertise about things like taxes, accounting, and estate planning. An Advisor’s COI may include attorneys, certified public accountants, insurance specialists, and other specialized professionals who can help with specific elements of your financial plan.

Advantages of Working with an Advisor

One of the key benefits to working with a Financial Advisor is they can provide valuable insight and help you create a financial plan that factors your assets and taxes into your overall long- and short-term planning goals.

And, if you choose to work with a Financial Advisor who is a fiduciary, you have the added guarantee that they’re acting in your best interest—it’s their legal obligation.

Not only can Financial Advisors provide valuable, objective investment advice, they can potentially help you achieve financial independence. Industry studies estimate that professional financial advice can add up to 5.1% to portfolio returns over the long term, depending on the time period and how returns are calculated.[4]

Financial Advisors also have access to tools and resources (e.g., financial software and market research) and they can provide guidance and support to help ensure you stay on track with your plan during market downturns.

Choosing the Right Advisor to Meet Your Needs

If you’re looking for tips about how to find an Advisor who fits your specific needs, read 7 Steps to Choose the Right Financial Advisor.

Symmetry Partners exclusively works through Financial Advisors. We strongly feel that investors are best served when working with someone who can help you navigate various market conditions throughout your investment journey.

Find out how Symmetry can help connect you to the right Advisor.

For questions or more information, visit symmetrypartners.com/contact-us or give us a call at 800-786-3309.

Symmetry Partners, LLC provides this communication on this site as a matter of general information. Information contained herein, including data or statistics quoted, is from sources believed to be reliable but cannot be guaranteed or warranted. Due to various factors, including changing market conditions and/or applicable laws, the content may not be reflective of current opinions or positions. All content on this site is for educational purposes and should not be considered investment advice, recommendation, or offer of any security for sale. Symmetry does not approve or endorse any third-party communications on this site and will not be liable for any such posts. 

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Investing involves risk, including the loss of some or all of your principal. Diversification seeks to reduce volatility by spreading your investment dollars into various asset classes to add balance to your portfolio. Using this methodology, however, does not guarantee a profit or protection from loss in a declining market.

[1] "The 2023 Planning & Progress Study,” Northwestern Mutual, https://news.northwesternmutual.com/planning-and-progress-study-2023

[2] "The 2023 Planning & Progress Study,” Northwestern Mutual, https://news.northwesternmutual.com/planning-and-progress-study-2023

[3] D. Labotka and S. Lamas, “Why Do People Hire Their Financial Advisors?” Morningstar Behavioral Research, June 2033.

[4] “3 Ways an Advisor Can Help Make a Difference,” Fidelity Wealth Management, https://www.fidelity.com/viewpoints/investing-ideas/financial-advisor-cost