David Lerner Associates: It's A Matter of Trust

David Lerner Associates: It's A Matter of Trust

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As we discussed in a recent article, the confidence level of Americans in their ability to save enough money to retire comfortably is at a record low level, according to a recent report from the Employee Benefit Research Institute (EBRI). About half (49 percent) of Americans say they are not confident in their ability to live comfortably in retirement.

Another recent report may shed a little bit of light on why so many Americans feel they are unprepared for retirement. A survey conducted by Deloitte’s Center for Financial Services reveals that there is a fundamental lack of trust on the part of many Americans when it comes to allowing financial services providers help them plan for retirement.

About 20 percent of the survey respondents expressed a high degree of trust in financial institutions. Meanwhile, only 15 percent expressed a high degree of trust in financial advisors, and only 11 percent expressed a high degree of trust in insurance agents and brokers. Just seven percent said they believe advertisements from financial institutions are highly trustworthy.

Digging a little deeper into the data, 20 percent of respondents said they don’t trust financial advisors to offer objective advice that addresses their retirement savings and income needs. This may suggest that for some, a fear of losing control over their retirement portfolio lies at the heart of their lack of trust if they think a financial advisor is more interested in guiding them toward investments that benefit the advisor rather than themselves.

The survey does offer some positive news: Among respondents who say they have formal plans for retirement, 83 percent who have a high level of trust in financial advisors worked with a financial professional in crafting their retirement plan. Or in other words, only 17 percent of them did DIY (do-it-yourself) retirement planning.

Planning for retirement is one of the most important financial responsibilities currently faced by most Americans. Today, fewer Americans are covered by traditional defined benefit pension plans, which offer a specific amount of income during retirement, than were covered a generation ago. As a result, planning and saving for retirement is mostly up to each individual, not his or her employer.

Given its importance, it may be risky to try to do all of your retirement planning yourself. Therefore, it may be wise to seek out a reputable, trustworthy financial advisor who can assist you in setting financial goals for retirement and implementing a plan designed to help you reach your goals.

Do your research on a financial advisory firm before hiring them and make sure you’re comfortable with their approach to managing and investing money. A good place to start is to ask your friends and family members if they are working with a financial advisor whom they would recommend.

To learn more about the financial advisory and retirement planning services offered by David Lerner Associates, please call us at 877-367-5960 or visit us online at www.davidlerner.com.

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. Member FINRA & SIPC.


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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates 1 877 367 5960 http://www.davidlerner.com

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