Many people wonder whether working with a financial advisor is worth the time. According to a recent study by the TIAA Institute and TIAA Wealth Management, the answer is yes. Surveying nearly 1,900 Americans and modeling multiple financial scenarios, the research found that professional financial advice leads to better financial habits, greater confidence, and stronger long-term outcomes across all income levels.
Individuals who work with financial advisors consistently make better financial decisions. Nine out of ten advised individuals save regularly, compared with three out of four people without an advisor.
They are also more likely to participate in retirement plans, diversify investments appropriately, and make better use of tax-advantaged accounts. These behaviors contribute to significantly higher net worth and greater financial confidence.
The value of financial advice is especially apparent during mid-career, when people often balance competing priorities such as retirement savings, college funding, taxes, and caring for aging parents. Financial advisors help clients organize assets strategically, improve tax efficiency, optimize investment allocation, and develop long-term estate plans.
One example highlighted in the report involved a successful physician with substantial retirement savings but limited after-tax assets. His advisor recommended shifting future contributions to more tax-efficient accounts, implementing a disciplined investment strategy, and beginning estate planning early. These changes positioned him to reduce future taxes and increase financial flexibility without increasing his savings.
The study’s financial modeling found that professional advice can significantly improve retirement outcomes through smarter financial decisions alone. Researchers estimate this guidance provides the equivalent of an additional 1.4% to 2.4% annual investment return without requiring additional savings or increased investment risk.
Despite these benefits, many Americans still avoid seeking professional advice because they believe they lack sufficient assets, their finances are too simple, or the cost outweighs the value. The TIAA study challenges these assumptions, concluding that financial advice delivers measurable benefits regardless of income or stage of life and can help individuals make better decisions, build greater wealth, and retire with more confidence.
For the full article The Value of Financial Advice: How Professional Guidance Delivers Results at Every Life Stage, click here.
Employees of the UNC System have Financial Consultants available at no-cost through CAPTRUST at Work and TIAA. To take advantage of this valuable benefit, click here to schedule your appointment with CAPTRUST at Work or to schedule a virtual consultation with TIAA, click here.