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Writer's pictureBob Brooks

If You Have This Much Money, You Should Have a Financial Advisor


"A recent survey found that those with more than $1.2 million in household assets report significantly higher levels of happiness when working with a financial advisor compared to those without an advisor."

Maybe one of the more mind-numbing surveys I have come across in Pop Culture Finance.

Where do I even begin? The survey of 1000 people questions each participant on what makes them happy. Somehow, the author concludes that the golden amount of $1.2 million in household assets is the recipe for happiness as long as you have a financial advisor.

If you think about it, would this survey stand the test of time in every type of market? For the past 13 years, financial advisors have had it easy as the market continues to go up with barely even a correction along the way. At the beginning of 2009, most investors were probably below $1,000,000 in assets and watched as their financial advisor accompanied them along the way as their account well exceeded $1,000,000. So you can see where it is pretty easy to get the connection between increasing investment account values, assets increasing over $1,000,000, and reports of these investment gains with their financial advisor's name on it. It is a simple association between very positive results and an advisor who puts a portfolio together in an environment where the market just won't go down.

I wonder what the results of this survey would be given the opposite market environment? Bull markets make everyone look like geniuses, and bear markets tend to expose investors.

However, that is not my biggest issue with this article. The title of the article implies that financial advisors are only for people with over $1,000,000 in investments.

I would suggest that a financial advisor is invaluable for anyone who wants to retire or has financial goals regardless of their net worth. Happiness is created because the investor has a game plan and knows whether or not they are on track. The point is that the investor knows where they are in relation to their goals which creates confidence that can lead to happiness.

The bottom line: Don't fall for the notion that a financial advisor is only good for someone with a million-plus dollars. Everyone can benefit from forming that advisor relationship.

Bob Brooks is a Financial Advisor and host of the Prudent Money Radio Show. If you would like to get in contact with Bob to inquire about his services, please give him a call at 972-386-0384 or email him at bob@prudentmoney.com

Bob Brooks

Listen to the Prudent Money Radio Show heard daily on 91.3 FM at 3 PM CST

PRUDENT MONEY FINANCIAL SERVICES

16633 Dallas Parkway, Suite 275

Addison, TX 75001

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