U.S. working with financial advisor 2022 | Statista (2024)

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U.S. working with financial advisor 2022 | Statista? ›

In 2022, 35 percent of Americans worked with a financial advisor, while 57 percent said that they didn't have a financial representative.

According to the latest U.S. Bureau of Labor Statistics (BLS) data, there are around 330,300 financial advisors employed in the country.

Not everyone needs a financial advisor, especially since it's an additional cost. But having the extra help and advice can be paramount in reaching financial goals, especially if you're feeling stuck or unsure of how to get there.

The financial services industry is continuously evolving, leading to questions about what the future of financial advisors might look like. The good news is that the employment outlook for personal financial advisors appears bright, with an expected 15% growth rate through 2031.

Use an Independent Custodian. Most reputable financial advisors never take possession of your money. Giving them direct access makes it easy for them to steal funds. Avoid doing that unless you're 100% certain that you can trust the person you're working with.

Americans who work with a financial advisor 2022

In 2022, 35 percent of Americans worked with a financial advisor, while 57 percent said that they didn't have a financial representative.

The study found that 70% of millionaires versus 37% of the general population work with a financial advisor.

Generally, having between $50,000 and $500,000 of liquid assets to invest can be a good point to start looking at hiring a financial advisor. Some advisors have minimum asset thresholds. This could be a relatively low figure, like $25,000, but it could $500,000, $1 million or even more.

But even the best financial advisors are at the whim of the market. Most professional investors who try to beat the market actually underperform it over a given time period. And those who do manage to outperform the market over one time period can rarely outperform it again over the subsequent time period.

Estimates on the return on investment from having a financial advisor vary. In a 2019 whitepaper, Vanguard assessed an “Advisor's Alpha,” or the value that a financial advisor adds to a client's portfolio, to be about a 3% net return per year, depending on a client's circ*mstances and investments.

Are financial advisors struggling? ›

The retention rate is low: By the fifth year, only 15-16% of advisors will still be in business. Over 90% of financial advisors in the industry do not last three years. Putting it simply: 9 advisors out of 10 would fail!

It's an investment. Failing to generate leads can lead to stagnant growth or a decline in business. 2. The Statistics: 80-90% of financial advisors fail and close their firm within the first three years of business.

Lack of work ethic. It takes a lot of hard work and discipline to break into a career as a financial advisor. While many are willing to work hard for a period of time, fewer are willing and able to maintain the high-level work ethic required to survive and thrive as a successful advisor.

A disadvantage of a fiduciary is that fiduciary advisors are often more expensive than non-fiduciary advisors as they charge higher market rates.

Con: costs and fees

Advisor fees typically decrease the more funds you invest. You may also find that many of them offer reasonable fees given the competitiveness that has increased in this field, both online and off. Ask yourself: Will I reach my goals sooner with or without an advisor after fees are paid?

Estimates of total U.S. financial advisor jobs range from 240,000 to 370,000. The Bureau of Labor Statistics tallied over 272,190 positions in 2023. DataUSA generated an estimate for 2020 that came in at around 372,000, while online recruitment site Zippia's research pointed to over 240,000 financial advisor roles.

There are many benefits to working with a financial advisor, yet only 35% of Americans have one, according to the most recent Northwestern Mutual 2022 Planning & Progress Study.

These advisors are registered with the U.S. Securities and Exchange Commission or a securities administrator of the state in which they practice. In 2022, the number of registered investment advisors reached 15,114.

18, 2024 (GLOBE NEWSWIRE) -- The Financial Advisory Services Market was valued at USD 94.8 Billion in 2022 and is expected to reach USD 157.7 Billion by 2032 at a CAGR of 5.3%.