Advisers garnering more trust
For clients, financial crisis provesd worth of expert financial guidance
The financial crisis may have wreaked havoc on people’s portfolios, but it strengthened their relationship with financial advisers.
Advisers are more trusted by investors than banks, insurance companies, investment firms and the government, according to an online survey of 1,150 investors by Fidelity Investments.
“The last several years have been a wake-up call,” said Scott Couto, president of Fidelity Financial Advisor Solutions.
“Financial matters are complicated for many people,” he said.
“The same way we rely on attorneys and doctors, an increasing number of investors are looking for help managing their long-term financial future. It’s created a bull market for financial advice,” Mr. Couto said.
REACHING OUT
A third of the investors surveyed in mid-February said they had reached out to an adviser during the crisis, and a quarter said that they rely on their adviser more than in the past, according to the survey.
The survey was conducted using a national sample of in-vestors over 25.
Of those investors that use an adviser, 90% ranked them as helpful during the crisis, more so than any other option. Investors also took more of their financial well-being into their own hands as a result of the crisis.
Half the respondents said that they have reduced their personal debt since the crisis.
Two of five of those surveyed reported increasing their retirement savings and increasing their emergency funds.
As a result of the increased savings and decreased debt, 55% said that they feel better prepared for retirement than before the financial crisis.
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