top of page

How Many People Use a Financial Advisor to Invest?

Sean Canonica

Apr 26, 2024

Anthony DeLuca, CFP, CDFA, and Senior Financial Advisor at Delta Advisory Group, says, “When it comes to the conversation of the worth of a financial advisor, it’s generally wise to look at the cold hard facts. Vanguard released a study showing that individuals who work with a financial advisor earn about 3% more per year than working alone.”

The article from ComparisonAdviser discusses how people manage their investment portfolios, highlighting that 47% self-manage, 9% use financial advisors, 39% rely on 401(k) or IRA accounts, and 5% use robo-advisors. Usage trends vary by age, with older individuals more likely to hire financial advisors, especially for complex needs like retirement and estate planning. The article underscores the potential benefits of professional advice, particularly as wealth and financial complexity increase.

Financial advice becomes necessary when one begins accumulating wealth or is unsure of how to invest. Anthony DeLuca, CFP, notes that individuals working with advisors earn about 3% more annually than those who manage alone. He advises seeking professional help to avoid mistakes or losses, especially for complex financial goals like retirement or estate planning. Younger generations tend to prefer robo-advisors, but as financial needs grow more complex, human advisors provide valuable personalized services that automated tools can't match.

Key findings include:

  • 47% of respondents self-manage their portfolios.

  • Older individuals are more likely to use financial advisors, with 21% of those over 60 doing so.

  • Younger generations lean towards robo-advisors or self-management.

  • Financial advice becomes crucial as wealth and financial complexity increase.

  • Human advisors offer more comprehensive services compared to automated tools.

*Source: Comparison Adviser - Author: Sean Canonica

bottom of page