Is (lack of) Money Your Greatest Fear?

Categories : Financial, News
February 28, 2024

Typical Americans have three primal fears: death, public speaking, and running out of money. Once again, a recent survey concluded that a majority of Americans fear running out of money more than they fear death or public speaking. This has been confirmed numerous times over several decades. Why should no money be scarier than death itself? Perhaps, I speculate, because we have no control over mortality, but our money is more manageable.

Why, then, don’t more people seek assistance from professional advisors and financial planners? Many believe that paying a professional money manager, rather than playing the Home Game, may result in a net cost to their retirement assets. This fallacy has been endlessly contradicted. Investment results generally improve when competent professionals are involved. In fact, a recent study from found that people who work with a competent financial advisor could wind up with about 15% more income in retirement.

Given the stature of “moneyless phobia,” the advisor solution should be ingrained throughout society. Find a competent advisor, implement the suggestions he or she co-develops with you, and your financial future will be improved. Yet, this concept is not widespread, with only about 35% of Americans utilizing professional financial advisors. Fully 62% of Americans admit that their financial planning needs improvement, so why wait?

This is not to say that every financial advisor will produce great results. Finding the right fit is vital to an investor, and fortunately, many resources are available to aid your search. Fortunately, the American public is taking the word fiduciary to heart, and with good reason. Simple in concept, the term fiduciary packs a wallop for investors. Working with a fiduciary advisor means that you will never have to worry about which side of the table you each represent. It’s always about you, and your needs come first. Fiduciary advisors put you first. Full stop.

Also important to long-term success with an advisor is sticking to fee-only professionals. Other business models allow the advisor to be compensated (in whole or in part) by commissions, creating at least the potential for conflicts of interest. Search for a fee-only (not fee-based) advisor, operating as a Registered Investment Advisor (RIA). This may sound like self-promotion, but it is truthful.

As fee-only, CFP®, fiduciary planners, Van Wie Financial understands the financial fears of most Americans. We firmly believe that education is the key to successful investing. Therefore, we are constantly educating our clients, as well as our radio listeners, as to what constitutes good investing practice.

We can’t help anyone resolve their fear of public speaking, and none of us can increase your life span. We can and will help investors succeed financially.

Van Wie Financial is fee-only. For a reason.