To protect our physical health, we trust our doctors to evaluate our treatment options and help us make decisions that impact every aspect of life. Nearly as important as someone’s medical health, however, is their financial health. But unlike doctors, relatively few people seek the advice of a trusted professional when dealing with complicated financial issues.
Figuring out exactly why this is the case involves quite a bit of guessing but very few concrete answers. But according to a survey by LIMRA, it can hardly be said that Americans don’t trust financial advisors.
“It can hardly be said that Americans don’t trust their financial advisors.”
LIMRA reached out to 297 households who work with a paid financial professional for investment decisions, retirement strategies and estate planning. In the course of the survey, LIMRA found that at least 90 percent of consumers enlisting the services of a financial advisor believed this person was putting the consumer’s interests first, rather than commission or hard returns. Consumers overwhelmingly agreed that their advisors were able to recommend the best products to fit their needs, as well as perform the due diligence required to make an informed financial judgment. A majority also agreed that a financial advisor provided an excellent value when weighing the costs and benefits.
In addition, 89 percent of respondents to the LIMRA survey believed their advisor was adept at explaining the reasoning behind their decisions in a way that was easy to understand.
LIMRA separated some of its findings based on the fee structured employed by the financial professionals. In terms of putting consumer interests first and recommending the right products and strategies, 89 percent of respondents paid a flat fee. The perception of the quality of an advisor’s work did not vary when advisors charged a fee based on the value of assets under management, either. And the vast majority of consumers reported being in a commission-based plan, yet still reported being satisfied with the level of service provided to them.
Clearly, most of those who can do so highly recommend being placed in the care of an able financial advisor. The numerous benefits conferred from taking the advice of a trusted professional are easy to see, and hard to overestimate. Consumers looking to optimize their financial health would do well to seek out the services of a reputable financial professional.