As company-sponsored pensions become less of a certainty for more and more American workers, the onus of planning for a financially comfortable retirement has shifted to individuals themselves. However, there are a number of challenges investors must contend with, including:
- 69 million workers (56 percent of the nation's workforce) do not have access to a workplace retirement plan;
- Social Security is the primary source of income for 54 percent of US retirees and, absent legislative action, the main Social Security trust fund would pay only 77 percent of its scheduled benefits by 2033;
- Ongoing inflation and market volatility.
Recent researchshows that while Americans believe they will need $1.27 million to retire comfortably, the average amount saved for retirement is $89,300. So, it’s not surprising that, on average, Americans believe there is a 45 percent chance of outliving their savings.
While 89 percentof people who work with an advisor have taken steps to address the possibility of outliving their savings, for those who do not work with an advisor, the numbers are much lower.
Why does working with a financial advisor make such a positive difference?
Absent an informed and objective financial expert, many investors lack the skill and discipline required to make the best decisions – particularly in a constantly changing economic environment. Timing the market, buying high and selling low are just a few of the mistakes investors can make without financial guidance. Money and investing are emotional topics and it’s easy to make poor choices when you are anxious, stressed and unsure of your next move.
Why don’t more people use the services of a financial advisor?
Many people believe they lack adequate assets to engage a financial advisor. Some are worried about the cost associated with receiving advice. Others are unsure how to find an advisor that’s right for them and their situation.
It’s important to note that many advisors work with investors at all asset levels. When working in an advisory relationship – where your advisor acts as a fiduciary – often the fee is a percentage of assets under management … so, your interests and the advisor’s are better aligned.
If you haven’t worked with a financial professional before, getting started can be daunting. However, the long-term implications of not putting a wealth manager’s expertise to work for you may compromise your financial security in the years to come.
To get started, visit our Find an Advisor page to locate an advisor in your area. Set up a free consultation and get started on your future today.