In today’s volatile economy, many Americans feel they cannot afford to work with financial advisors. New research shows why they can’t afford not to.
Russell InvestmentsA Seattle-based international investment firm has collected data from the past decade, including a tough market in 2022, to show why sound financial advice is more important than ever. For Advisors looking to hire new clients or retain old ones, Research overview It can be a very compelling proposition.
“Advisors can be unsure of the value they actually bring to their clients,” said Tina Downing, senior director of advisor and brokerage solutions at Russell Investments. “And this was one of the reasons why we created this survey, so that we can reflect and articulate all that they are really doing for their clients.”
The 2020s economy was difficult to navigate on its own, to say the least. In 2022, the S&P 500, Nasdaq and Dow Jones will all suffer declines. Worst year since 2008the S&P fell 19.4%.
And in a historically rare combination, the bond was damaged at the same time. For example, the Berkeley U.S. Aggregate Bond Index fell 13% by the end of 2022. worst year ever.
At the same time, both inflation and interest rates soared. In the first half of 2022, the consumer price index will rise year by year jumped to 9.1%, the highest in the last 40 years.To bring this down, the Federal Reserve will reduce the Federal Funds rate to 5% or more — Highest since 2007.
Despite all these challenges, few Americans have turned to financial advisors for help. In 2022, only 35% of U.S. adults were working with wealth management firms, according to one study. Reported by Edelman Financial Enginesa financial services company in Santa Clara, California.
Russell Investments argues why the remaining 65% should reconsider. He shares three key benefits of working with a financial advisor that the research uncovered.