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Last updateSat, 29 Jul 2017 12am

Back You are here: Home Market Market Update Insight The case for hiring a Financial Adviser

The case for hiring a Financial Adviser

Do you need financial advice for your investment?  A recent study at the 401(K) returns of more than 425,000 savers from 2006 through 2010 found that:  the median annual return of those who got professional help was almost three percentage points higher than the return for those who invested on their own, even after taking fees into account.

MP900443245 One reason for that performance gap is that the investors who flew solo were far more likely to be too aggressive or too conservative. Emotions also played a role: Do-it-yourselfers were more apt to cash out of stocks in the 2008 crash. As a result, their returns lagged substantially when the market rebounded in 2009.

Reference:  CNNMoney.com, 2011-11-30, “Should I Hire a Financial Adviser or Go It Alone?”