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Does Paying for Financial Advice Make People More Confident?

Sean Canonica

Aug 2, 2024

As both DeLuca and Bellak’s points illustrate, an advisor can help clients feel more confident about their financial future, especially if the professional pays close attention to their needs. A person’s confidence also hinges on their ability to keep an open mind and feel that they’re getting the most monetary value out of their advisor-client relationship.

The article explores the impact of hiring a financial advisor on individuals' confidence in their financial plans, highlighting differences across age groups.


Key Findings:

  • Prevalence of Financial Advice: Only 18.4% of survey respondents have paid for financial advice. The likelihood of hiring an advisor increases with age, with just 5.6% of those under 30 seeking advice compared to 47.9% of those 60 and older.

  • Impact on Confidence: Respondents who paid for financial advice were generally 16.9% more confident in their financial plans compared to those who did not. This confidence gap diminishes with age, dropping from 22% for those under 30 to 11.1% for individuals 60 and older.


Anthony DeLuca's Insights:

  • Confidence Variation by Age: DeLuca notes, “Younger individuals will have more confidence in a financial plan than someone middle-aged, because they are less emotional about the results.” He explains that older individuals may be “jaded by the results” of financial advice, impacting their confidence levels.

  • Importance of an Open Mind: DeLuca emphasizes that having an “open mind” is crucial. He advises clients not to “take it personally” when receiving advice and suggests that providing “deep and honest data” can lead to a more effective financial plan.


Value of Financial Advisors:

  • Perceived Value: DeLuca asserts that the value of a caring financial advisor is “invaluable,” highlighting how his firm’s dedication has positively impacted clients' lives. He contrasts this with firms that treat clients as mere numbers.

  • Behavioral Finance: Andrew Bellak supports this view, noting that clients who pay for financial advice tend to value and follow the plan more, leading to higher confidence.


Overall, hiring a financial advisor generally boosts confidence, especially for younger individuals. However, as people age, their confidence gap with and without a financial advisor narrows. An advisor's effectiveness also relies on the client's openness and the perceived value of the advice.

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