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The Top 5 Reasons Clients Hire a Financial Advisor



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This circle graphic shows the top reasons for hiring a financial advisor.

The Top 5 Reasons Clients Hire a Financial Advisor

What drives investors to hire a financial advisor?

From saving for a down payment to planning for retirement, clients turn to advisors to guide them through life’s complex financial decisions. However, many of the key reasons for hiring a financial advisor stem from emotional factors, and go beyond purely financial motivations.

We partnered with Morningstar to show the top reasons clients hire a financial advisor to provide insight on what’s driving investor behavior.

What Drives Hiring Decisions?

Here are the most common reasons for hiring an advisor, based on a survey of 312 respondents. 

Reason for Hiring% of Respondents
Citing This Reason
Type of Motivation
Specific goals or needs32%Financial-based reason
Discomfort handling finances32%Emotion-based reason
Behavioral coaching17%Emotion-based reason
Recommended by family
or friends
12%Emotion-based reason
Quality of relationship10%Emotion-based reason

Numbers may not total 100 due to rounding. Respondents could select more than one answer.

While financial factors played an important role in hiring decisions, emotional reasons made up the largest share of total responses. 

This illustrates that clients place a high degree of importance on reaching specific goals or needs, and how an advisor communicates with them. Furthermore, clients seek out advisors for behavioral coaching to help them make informed decisions while staying the course.

Key Takeaways

With this in mind, here are five ways advisors can provide value to their clients and grow their practice:

  • Address clients’ emotional needs early on
  • Demonstrate how you can offer support
  • Use ordinary language
  • Provide education to help clients stay on track
  • Acknowledge that these are issues we all face

By addressing emotional factors, advisors can more effectively help clients’ navigate intricate financial decisions and avoid common behavioral mistakes.

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Curious about what drives clients to fire a financial advisor? Discover the top 5 reasons here.

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