Today’s workers are waking up to the fact that their retirement is almost fully in their hands. According to the American Benefits Council, nearly 90 million of them will rely on the nest eggs they build through their workplace retirement plans when they retire, and they realize that now more than ever, they need expert investing advice.
As a result, the number of people looking for retirement advice is on the rise. But a recent TIAA-CREF financial advice survey shows investors have a hard time knowing which source of advice is worthy of their trust.
For example, the survey says younger investors are more likely to turn to friends and family for financial advice while middle-age investors prefer to get their advice online. Annual reports from Employee Benefits Research Institute show that few investors—only 19%—choose to consult a professional advisor about their retirement savings, even though investors who get personalized investing advice reduce their chances of running out of money in retirement and have more confidence in their ability to retire comfortably.
Trust Issues Are Holding Us Back
According to the TIAA-CREF survey, investors have many reasons why they avoid personal advice. Primarily, they don’t know who they can trust—and they value trust twice as much as either performance or fees. They also believe they can’t afford professional investing advice, and many simply don’t want to discuss their money issues with anyone.
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This hesitancy to work with a qualified investing professional is holding us back. More than half of all workers have less than $1,000 saved for retirement, and nearly half are simply guessing at how much they’ll need to save in order to live comfortably in retirement, according to EBRI research.
Dave always recommends you work with an experienced investing advisor in person instead of getting your investing advice online or from family or friends. Online resources are great for general investing information, but for a personal retirement plan based on your specific situation, nothing beats a face-to-face meeting with a financial advisor.
Investors who do work with advisors to save for retirement agree, according to a Fidelity Investments survey. A large majority—84%—said their advisors helped them focus on their long-term investing returns and ignore short-term market swings. Seventy-two percent also credit their advisors with helping them reach their financial goals.
Find an Advisor Worthy of Your Trust
So how can you find an advisor who will keep you focused on your long-term retirement goals? Family and friends, while not the best source of investing advice, can help by recommending professional advisors they know and trust.
Take your time and talk with each one—you don’t have to work with the first advisor you speak with! Find an advisor with experience who is a good fit with your personality and who will explain his recommendations so that you can easily understand how they benefit you. Ask questions about fees, how often you will meet about your retirement plan, and how you can contact your advisor with additional questions or concerns.
The right advisor will give you honest answers and will be patient, no matter how many questions you ask.
For another source of top-notch investing professionals, check to see who Dave recommends in your area.