What can you learn from affluent investors?

While you save and plan for your financial future, consider taking a cue from affluent investors.
One of the biggest lessons these successful investors can share is the importance of working with a financial advisor.
According to our TIAA Affluent Investor Barometer1, 60% of investors with $250,000 or more in investable assets said they use a financial advisor to manage their investments. Don’t have $250,000 to invest? No problem. A financial advisor can help no matter how much you have to invest.
Infact, over half the respondents said that an advisor is the most reliable source of financial information, followed by financial newspapers and financial websites.

How an advisor can help you

There are three key things you may be able to do better with the help of an advisor.
  • Invest for the long-term: 67% of people with an advisor make changes to their investments quarterly or annually, compared with 60% of affluent investors overall.
  • Stay on course: 53% of our respondents who have an advisor said they took no action during recent market volatility because their portfolio was regularly managed and positioned to ride out turbulence, compared to 41% of respondents without an advisor.
  • Know your portfolio: 72% of surveyed affluent investors with an advisor have checked the fees on their investments in the last six months, helping them understand the value they’re receiving from their finance professional and keep a pulse on their portfolio management.

Advisors can do even more

Affluent investors who seek the advice and guidance of advisors said they found them to be helpful with:
  • Determining which investment vehicles are appropriate for their goals (97%)
  • Recommending how to divide investments among asset classes such as stocks and bonds (97%)
  • Explaining how to turn savings into lifetime income in retirement (93%)
  • Strategizing about financial legacy and estate planning (93%)
  • Evaluating the tax implications of investment decisions (91%)

Starting early can help yield results

Affluent investors don’t wait until they near retirement age to start getting advice.
More than half (53%) of surveyed respondents who have met with a financial advisor first did so between the ages of 25 and 44. Twenty-seven percent of respondents who have met with a financial advisor had their initial meeting between the ages of 25 and 34.

How can you find advice?

There are many options available to help you receive personalized financial advice in person or over the phone.
Be sure to ask your advisor to give you a list of dos and don’ts so you can best prepare for the meeting.
You can use our webinars, web-based meetings, online tools tohelp you choose your asset mix and learn whether you’re saving enough to reach your goals).
Also, your workplace retirement plan may offer advice and guidance sessions at no additional cost.,

Don’t go it alone

Whether you’re choosing assets to invest in or planning for your retirement, you don’t have to go it alone.
To contact a TIAA consultant or an advisor, call us at 888 211-3868.
1 The 2015 TIAA-CREF Affluent Investor Barometer was conducted by an independent research firm and polled a random, nationwide sample of 1,242 adults who are financial decision makers for their household and have at least $250,000 in investable assets to assess their attitudes, preferences and behaviors related to financial planning and investing.
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