American professional baseball player Yogi Berra summed it up the best.
If you don’t know where you are going, you might wind up someplace else.
That’s certainly true when it comes to financial and retirement planning, and underlines the value of charting a clear course and seeking professional advice. Research shows that people working with a professional on a comprehensive financial plan are twice as likely to report feeling confident about their financial future. And according to a recent study by HSBC bank, those with both a financial plan and the benefit of professional advice accumulate more than three times the level of assets of those without.
Individuals working with a financial professional felt more in control of their finances, and were more likely to stay on track in meeting their retirement, education and insurance goals than those managing on their own, found a recent joint study by the Financial Planning Association and Ameriprise. In addition, those seeking professional help reported being more proactive in saving, investing and managing their portfolios.
Many of those consumers who were working with a professional said their guidance helped them plan for retirement. In fact, 42% of those working with an adviser felt “extremely” or “very” prepared for retirement, while only 16% of those managing their own finances made the same claim.
Those seeking professional advice were much more likely to save aggressively, participate in workplace and personal retirement plans, and reposition their portfolios in times of turmoil to protect them and take advantage of market opportunities.