AUSTIN, Texas – (COMMERCIAL THREAD) –Herbaria & Company, an independent business management consultancy, found in its first study of consumer financial behavior that people who hire a financial advisor are three times happier than those who manage their own finances. Specifically, people who had a financial advisor were more fulfilled, grateful, intentional, and satisfied with their impact on the world – which they cite as four predictable keys to happiness – than those without a financial advisor. And for those with large fortunes who did not have a financial advisor, their dissatisfaction gradually worsened as they accumulated money. This body of academic research has defined that not only are financial advisors essential to a person’s financial security, but they can also contribute to their emotional and mental well-being.
âThe results of the study are fascinating because they show the power of financial planning on well-being. By hiring a financial planner, people are happier in their lives, âsaid Sonya Lutter, PhD, CFP, LMFT, director of institutional research and education at Herbers & Company. âWorking with a financial advisor speeds up joy in other key areas of our lives, because people who have financial advisers were not only more satisfied with their finances, but they were also much more satisfied with their personal relationships and their lives. communication with their partners. ”
The Herbers & Company methodology:
The consulting firm designed the questions derived from Basic Principles of Psychotherapy which explored the daily behaviors and interactions of consumers to determine happiness.
Herbers & Company worked with a reputable third-party survey company to distribute these questions to their sample group via email.
A thousand American adults who identified themselves as having $ 250,000 or more in assets participated; they were evenly disaggregated by sex and represented all geographic regions of the United States and adult age groups.
The survey was blind, meaning respondents were unaware of the industry or company that commissioned the survey.
Herbers & Company goes beyond reporting survey data to conducting academic research with multivariate analysis.
Two-thirds of respondents had a financial advisor in place before completing the survey, while one-third did not. Those who had a financial advisor had higher responses in all four of the key areas of happiness, regardless of gender, age, income or asset level.
In addition, the study found that the degree of happiness a person achieved from having a financial advisor increased dramatically once a consumer accumulated $ 1.2 million in assets and significantly decreased by four standard deviations for them. people without a financial advisor. The rapid decline in dissatisfaction from $ 1.2 million to $ 6 million in assets shows that those with more wealth aren’t happier unless they’ve hired a financial advisor. Likewise, people working with a financial advisor were consistently above average in terms of happiness, accomplishment, intention, impact, and gratitude with a rapid increase in cumulative happiness of over 1.2 million dollars in household assets.
“For those who reach the richest five percent in the United States, working with a financial advisor can be the difference between financial success or allowing money to diminish their happiness, which is a critical perspective to have.” said Dr Lutter. added. âWe all realize that money plays a role in our happiness in one way or another, but this study goes into more detail about how dealing with large sums of money on your own can take a toll on your life. well-being of a person and literally reduce their happiness. Working with a financial advisor as early as possible is a link to happiness.
So while money alone has yet to prove it makes someone happier, having a professional to help people plan and manage their money has, according to this study. .
To access this university research study, Click here.
About Herbers & Company
Herbers & Co. is a full-service strategy, management and innovation consultancy serving independent consulting firms of all shapes and sizes. Its mission is to reformulate, modernize and develop the growth of consulting firms. Executives look to us to increase revenue, profits and business value through growth strategies, human capital management, advisor training programs, operational efficiency, planning succession, leadership programs, better customer experiences and digital innovations. We’ve worked with over 10% of the total US multi-billion dollar independent financial advisory firms and maintain real-time trends on what’s most important / impacting the financial advisory industry.