When it comes to personal finance, Americans are changing who they turn to for advice.
According to a recent poll conducted by The Harris Poll on behalf of Northwestern Mutual, nearly 26% of Americans say their most trusted source of financial advice this year is a financial advisor. The survey includes responses from more than 2,300 people.
This is a change from last year when 30% said their most trusted source of financial advice was themselves. This year, only 20% say they have the most self-confidence.
After professionals and themselves, the people most frequently consulted by Americans for financial advice are their spouses or partners (16%) and family members (13%).
Overall, the survey reveals that the value of professional advice has increased over the past year, told CNBC Make It Tim Gerrand, executive vice president and chief distribution officer at Northwestern Mutual.. Part of that is due to the pandemic, says Gerendt, which has caused financial strain and setbacks for many over the past year and a half.
“After the events of last year, a lot of people are looking for someone they can trust during unexpected times,” said Gerend.
Almost 38% of survey respondents say they are currently working with a financial advisor, compared to 29% who worked with one before the pandemic. The remaining 15% of respondents did not have a mentor before the pandemic, but they plan to work with one in the future.
Gerrand sees it as positive that more and more people are turning to professionals to help them with their finances. “A good advisor will help protect you against the risks of error (think insurance) and help you take advantage of opportunities when things are going well (think investments),” he says.
Taking control of your finances isn’t something you have to do on your own.
“Turning to financial advisors can alleviate that worry when it comes to navigating financial priorities and planning long-term goals,” says Gerrand.
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