September 20, 2023 6AM-Top banner logo-small.png

SUBSCRIBE

SmartAsset

Special Edition

This newsletter is brought to you by our partner, SmartAsset.

 

7 mistakes people make when choosing a financial advisor

smartasset-guadalupe1920x1080.png
Research suggests that people work with a financial advisor could end up with 15% more money to spend in retirement.¹ | Photo provided by SmartAsset
Life should be a balance of adventure and relaxation — not finances. Enter: Working with a financial advisor. But choosing the wrong one could wreak havoc on your retirement.

According to a 2022 Northwestern Mutual study, over 60% of US adults think their financial planning skills need improvement — and yet, only 36% of them work with a financial advisor.1

Why? With thousands of options available, it can seem daunting to choose one. Plus, it can determine your financial trajectory for years to come. But some things are better left to the professionals. While advisors are prohibited from promising returns, research suggests that people work with a financial advisor:
  • feel more at ease about their finances, and
  • could end up with 15% more money to spend in retirement.2
So, how does that play out over time?

Let’s pretend we have $500,000 to invest — a good chunk of change. According to a 2019 Vanguard study, here’s what that investment would be worth after 25 years:
  • $1.69 million with self-management alone
  • $3.4 million with a financial advisor (read: 2x more)
In other words, an advisor-managed portfolio would average 8% annualized growth over a 25-year period, compared to just 5% from a self-managed portfolio.3

Okay... but how do I find one?

SmartAsset’s no-cost tool simplifies the time consuming process of finding an advisor. A short questionnaire matches you with up to three vetted financial advisors serving your area, each legally bound to work in your best interest. In many cases, you can be connected instantly to compare and decide on the best fit for you.

Ready to know what to look out for? Check out SmartAsset’s list of seven mistakes to avoid when choosing an advisor so you can work towards a more comfortable retirement.
 
Asked
 

Are you maximizing your portfolio?

Answer a few questions to match with up to 3 financial advisors who can help you make the most of your retirement savings.

Sources:
1. “Planning and Progress”, Northwestern Mutual (2022)

2. “Journal of Retirement Study Winter” (2020). The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of your future results. Please follow the link to see the methodologies employed in the Journal of Retirement study.

3. Vanguard (February 2019), Putting a Value on Your Value The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of your future results. Please see the methodologies employed in the Vanguard whitepaper. To receive a copy of the whitepaper, please contact compliance@smartasset.com.
 
 

Content marked with an * is paid advertising. Content marked with an ^ is created by our content studio. The company may also generate commission from affiliate links in the newsletter.

You received this email because you are signed up for newsletters from 6AM City.

Change your preferences or unsubscribe here.

Copyright © 2023 6AM City Inc, All rights reserved. P.O. Box 2505, Greenville, SC 29602