It’s been a “chicken and egg” question for years: Do wealthy people seek financial advice or does advice increase a person’s wealth? Thanks to some recent studies, the answer is becoming clearer … advice tends to increase wealth.
Canadian research shows that having a financial advisor helps people increase their wealth. And the longer people have had advice, the more their investments have grown.
A small percentage of people have the knowledge and time to follow the market and make their investment choices without the help of an advisor. Leaving these aside, people who’ve had a financial advisor for 15 years or more have 3.9 times the savings of people that do not have an advisor but are similar in all other ways (such as age, income levels and education).
This is mostly because having a financial advisor encourages people to save regularly and save more.