Experienced investors make decisions alone, but they also value advisors

More American consumers are feeling knowledgeable about investing but that doesn’t mean they want to do it alone…well not entirely.

The share of respondents who indicated to a new Hearts & Wallets survey about investing experience that they feel ‘very’ or ‘somewhat’ experienced has increased to its highest level since 2010 but at 31% remains barely a third and almost matches the percentage who feel ‘very inexperienced’ with investing, although this was at 45% less than a decade ago. 

Interestingly those who say they feel very experienced tend not to rely on that. While 71% of this cohort say they make investment decisions alone, but almost the same share (69%) also turn to professional advisors for information and advice at least some of the time.

And the study also found that the value placed on professional advice is rising, with a 22-point rise in net percentages of respondents saying: “I see value in paying for professional financial advice, whether or not I use a financial advisor today” and “My financial advisor is a partner to me.”

Both statements are tied for first among the top 5 changing attitudes long term, while others include wealthier households who want to bank and invest at the same firm, increasing interest in asset managers behind investments, and a decrease in consumers who resist retirement assets remaining in plan.

“Consumer empowerment and advice from a paid investment professional may seem contradictory, but they aren’t,” explained Laura Varas, Hearts & Wallets CEO and founder. “As more US households gain confidence in investing, they're becoming more self-reliant in making financial decisions, yet with self-reliance comes the increasing realization of the value paid advice. Winning service models will cater to consumers who are empowered and seek professional advice.”

While the survey also found that consumers’ optimism about their own finances has increased, lower-asset Gen Xers and parents with young children showed higher levels of anxiety.

It also identified that households have an average of 3.5 financial goals in 2024, the highest ever for the survey. Building an emergency fund has surpassed retirement for most respondents, while concerns around US politics, inflation, and data security on financial websites are all high rankers.

Market volatility risk tolerance is also elevated with 35% of households feeling comfortable “accepting volatility in the hopes of getting a higher return.”