Most Investors Believe Financial Advisers Are Crucial to Long-Term Goals

Having a professional financial plan not only helps investors achieve their long-term goals, but it also boosts confidence and well-being amid market ambiguity, according to a new survey from Morgan Stanley Wealth Management

The survey, fielded in fall 2024, polled 1,013 affluent investors, each with liquid assets of at least $250,000, between the ages of 25 and 75 about how financial planning fits into their lives.

According to the report, “financial planning” is defined as a “comprehensive process” in which a financial adviser looks at a client’s financial standing and helps the client set and work toward short- and long-term goals.

Benefits of a Plan

Having a financial plan often correlates with more “positive mental wellbeing,” and investors with a plan report greater confidence and satisfaction, according to the report.

The study found that fewer of these investors worry about saving enough (36%, as compared with 47% of those without a plan), and they rate their investment value and financial health higher by 10 percentage points. Further, these investors are also more likely to say they feel “prepared” and “hopeful” about their financial outlook, and they report better mental health about their general life direction and relationships.

Despite these perceived feelings, there is still a “knowledge confidence gap” among respondents. The report found that while 53% of those working say they are confident in saving for retirement, only 36% said they feel very confident that they know how to do so.

A large majority of respondents (66%) said they lack confidence in achieving their long-term goals; this number was higher among women (68%) and younger investors (70% of Millennials, 72% of Generation Z), according to the report.

Advisers Make a Clear Difference

While most investors (97%) recognized how important financial planning is, only about half (53%) have a plan, according to the survey.

A main reason for this disconnect is barriers that respondents claimed are roadblocks to planning, including high costs (53%), thinking they can achieve similar results on their own (44%) or lack of assets (38%).

These perceived barriers are an opportunity for advisers, according to Morgan Stanley. About three out of four investors surveyed (74%) said they believe that using a financial professional is crucial, “demonstrating that the value proposition for professional guidance is well understood.”

Among investors who work with a financial adviser, those with a plan are “significantly more engaged.” According to the survey, 51% meet with their adviser (vs. only 25% of ones without a plan) and 37% actively review adviser communications (vs. 20%).

According to the summary, these numbers show a large opportunity for advisers “to enhance client relationships and engagement through comprehensive financial planning.”