40% of investors do not have a financial plan

The survey finds that of the investors who have no financial plan:

• 31 percent say they have not crafted one;
• 20 percent say they do not need one;
• 16 percent say they do not know how to create one; and
• 15 percent note they don’t need a formal financial plan because “all of the information I need is in my head.”

According to the survey, of the 783 potential investors over the age of 18 who have at least $100,000 in investable assets, 36 percent have never worked with a financial advisor. Or they have in the past, but currently aren’t.

The top reasons given were respondents thought they could do it themselves and believe that they:

• Don’t need professional help (40 percent);
• Don’t want to pay the fees associated with working with a financial advisor (20 percent);
• Don’t have enough assets to work with an advisor (11 percent) or;
• Are afraid to trust a stranger to handle their financial needs (6 percent).

Of those investors that do work with a financial advisor, 19 percent say they do so because they believe they need help to make better investment decisions or need more information and options regarding investment opportunities.

In addition, 17 percent say they turn to a financial advisor to avail themselves of the professional’s knowledge, expertise and investment success.

More information about the “Fear of Financial Planning” survey is available here.