Faith in advisers soared after financial crisis

'Bull market' for advice as investors seek help recovering

Apr 3, 2013 @ 8:50 am

By Jason Kephart

The financial crisis may have wreaked havoc on people's portfolios, but it strengthened their relationship with advisers.

Financial advisers are more trusted by investors today 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.”

A third of the investors surveyed in mid-February said they had reached out to a financial adviser during the crisis and a quarter said they rely on their adviser more than in the past, according to the survey. The survey was conducted using a national sample of investors over 25.

Of those investors that use a financial 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 of the respondents said they've reduced their personal debt since the crisis. Two out of five reported increasing their retirement savings and increasing their emergency funds.

As a result of the increased savings and decreased debt, 55% said they feel better prepared for retirement today than before the financial crisis.

“We saw people take more accountability for the things they can control,” Mr. Couto said.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

How InvestmentNews picks its Women to Watch winners

The process is laborious and exacting, but well worth it. The end result each year is an impressive group of women in the advice industry from whom others can draw inspiration.

Latest news & opinion

Ohio National offers buyouts, ends commission trails amid jumbled regulatory oversight of VAs

Jurisdiction is shared between the SEC, Finra and state insurance commissioners. Will any of them step in?

6 mistakes advisers make when onboarding new clients

Starting a new relationship with a client is harder than it looks.

10 states with lowest overall tax burden

Here's a list of the states with the lowest total tax burden from Wallet Hub.

7 surprising things Medicare doesn't cover

Gaps in Medicare's coverage can wreak havoc with a retiree’s budget, but here are some solutions to help your clients fill the gaps.

Step one: Withdraw from the broker protocol

Pulling out of the protocol proved to be one part of multipronged strategies by Morgan Stanley and UBS to reduce broker attrition. So far, their plans seem to be working.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print