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

FAQs

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. The share of Americans approaching a financial advisor decreased slightly compared to the previous year.

The Personal financial advisors workforce in 2022 was 399,640 people (30.7% women and 69.3% men). This implies an average annual growth of 29.8% between 2014 (307,932) and 2022 (399,640).

For example, financial advisors can help you plan for retirement, budget, plan your estate and more. They also help you set your personal financial goals to reach milestones. For instance, some people might want to buy a house soon while others are focusing on saving for retirement.

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 reveals that 70% of millionaires work with a financial advisor, compared to just 37% of the general population. Moreover, over half (53%) of wealthy individuals consider their financial advisors their most trusted source of financial advice.

Ultimately, there's no one-size-fits-all answer — some people, like those who tend to be more experienced, knowledgeable and disciplined might work better with an hourly fee adviser while others are probably better off having a pro mind the shop.

The Bottom Line

There is always going to be inherent risk in trusting your money with another person. Financial advisors are meant to take care of your money but it doesn't mean each and everyone will always have your best interest at heart.

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

Are financial advisors struggling? ›

The Statistics: 80-90% of financial advisors fail and close their firm within the first three years of business. This means only 10-20% of financial advisors are ultimately successful. 6. Poor Execution: Lots of plans, ideas, and dreams but no process or organized effort to make things happen.

According to various studies and publications, the average age of financial advisors is somewhere between 51 and 55 years, with 38% expecting to retire in the next ten years.

The Bureau of Labor Statistics has projected that 42,000 new financial advisor jobs would be added between 2022 and 2032. That will increase the total number of positions 13% over the decade from 227,600 in 2022 to 369,600 in 2032.

Here's when you may want to forgo a financial advisor and do it yourself: You're confident in managing your own investments: If you are comfortable selecting and managing your own investments, you may not need a financial advisor. Perhaps you follow the markets closely and do your own research on potential investments.

Potential negatives of working with a Financial Advisor include costs/fees, quality, and potential abandonment. This can easily be a positive as much as it can be a negative. The key is to make sure you get what your pay for.

But these professionals are only as good as the service they provide their clients. If your financial advisor isn't paying enough attention to you, isn't listening to you, or is confusing you, it may be time to call it quits and find a new advisor who is willing to go the extra mile to keep you as a client.

According to the 2021 U.S. Bureau of Labor Statistics data, there are more than 330,300 financial advisors employed in the United States with an increasing number projected over the next decade.

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%.

In 2022, the number of registered investment advisors reached 15,114. Why register? Registration as an RIA gives advisors an advantage in the job market. As with any licensing process, this registration keeps other less-qualified advisors from entering the job market.

Financial Advisory Services Market size was valued at USD 85.1 billion in 2022 and is projected to grow at a CAGR of over 5.5% between 2023 and 2032. The rising investments in AI are significantly boosting the market growth.