Financial Success Begins and Ends with a Financial Advisor
Here’s a disconcerting fact about retirement savings: a recent survey1 revealed that a staggering 46% of Gen Xers believe they won’t have enough money to retire comfortably. Delving deeper into the study, we find that 35% of respondents have saved less than $10,000, and a disheartening 18% have saved nothing at all. Considering these sobering statistics and the evident lack of financial planning and confidence, the role of a financial advisor has never been more crucial. Here are five compelling reasons why the American public needs your financial expertise now more than ever:
- High Net Worth Individuals Trust Financial Advisors
Financial success often involves having the right guidance. Consider the results of F&G’s survey, which revealed that 70% of respondents with total investable assets exceeding $1,000,000 (excluding pensions, retirement plans, and property) worked with a financial advisor. This emphasizes the recurring presence of financial advisors in individuals’ paths to financial prosperity. - Personal Finance is a Blend of Science and Art
The digital age has revolutionized how Americans access information, ushering in an era of “do-it-yourself” personal finance. In hindsight, it’s clear that raw information alone isn’t enough. To be fluent in the language of personal finance, an individual must first possess a solid understanding of the science behind it and then tailor their findings with the art of interpretation. Few can accomplish that without the guidance of a financial advisor. - Comprehensive Financial Planning Goes Beyond Investments
While family and friends are eager to share stories of their successful investments, they often neglect to discuss topics that are, more important, such as insurance, tax, and estate planning. A comprehensive financial plan not only encompasses these vital aspects but goes beyond. For example, risk management plays a key role in safeguarding even the most substantial financial legacy from vulnerabilities. Financial advisors are instrumental in adopting a holistic approach to secure one’s financial future. - Social Security and Retirement Benefits are Complex
The statistics are impressive: in 2023, the Social Security Administration anticipates 67 million Americans receiving monthly Social Security benefits, and the Bureau of Labor Statistics notes that 69% of private industry workers and 92% of state and local government workers had access to retirement plans in 2022. However, even with such a vast number of people, only a portion of them have a deep understanding of the complexities of these systems, such investment management to Social Security claiming strategies. To ensure individuals to make informed decisions and become self-sufficient in the future, they must collaborate with experts like you. - Preparing for the Unforeseen Costs of Care
While financial advisors typically focus on high and ultra-high net worth individuals, it’s important to acknowledge that these clients are also susceptible to the risks associated with longevity. Few Americans understand the value of long-term care insurance for disability or long-term illness coverage, let alone the costs of aging at home while maintaining good health. Baby boomers, aged 59 to 77, represent the next wave of individuals facing these challenges. However, according to a survey of 2020 census data, over 40% of baby boomers have no retirement savings.
A recent Bankrate survey highlighted that achieving “comfortable and financially secure” requires an annual income of approximately $233,000. The Economic Policy Institute reports that the average annual wage of the top 10% of Americans is $173,176. These figures underscore that financial security goes beyond salary alone; it hinges on how individuals allocate and utilize their earnings wisely. To navigate these complexities successfully, individuals need the expertise and guidance of financial professionals like yourself.
The role of a financial advisor has never been more pivotal in helping Americans secure their financial future, from wealth management to retirement planning and safeguarding against unforeseen circumstances. Your expertise and guidance are indispensable in these evolving financial landscapes.
Source:
1 Prudential June 2023, “Generation X confronts harsh new reality of retirement: unreadiness”.
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