If you're worried about a recession, now is probably a good time to consider hiring a financial adviser
- Americans who work with a financial adviser are more optimistic about their financial situation, despite believing a recession is imminent, according to a CFP Board survey.
- Sixty-seven percent of people who work with an adviser feel financially prepared for an economic downturn, compared to 38% of those who don't have professional help.
- It's nearly impossible to recession-proof your money, but a good financial planner or investment adviser can help you protect it.
- SmartAsset's free tool can help you find a financial adviser to plan for your money »
There's a lot of upside to working with a financial adviser, especially if you're worried about what the future holds.
In partnership with Morning Consult, the Certified Financial Planner Board of Standards (CFP Board) surveyed 2,200 Americans and found that just over half (55%) believe a recession is going to happen in the United States within the next year.
The survey revealed that despite worries about the economy, those who work with a professional to manage their money appear to be in better shape. Two-thirds of the respondents who work with a financial adviser - a catch-all term that generally includes financial planners and investment advisers - say they feel financially prepared for a recession, compared to just 38% of those who go it alone.
Not only do they feel more prepared, an even greater share feel positive. Seventy-eight percent of people who have a financial adviser report feeling optimistic about their personal or household financial situation. Of those who work specifically with a certified financial planner (CFP), 85% feel optimistic.
If a recession did occur, 77% of the respondents who work with a financial adviser say they feel confident that person would successfully manage their money.
An economic downturn can have wide-ranging effects on your financial health, from job insecurity to investment losses. Managing cash flow, paying down high-interest debt, and building up an emergency fund are a few fundamentals that become even more important to prioritize ahead of a recession, and a financial planner can offer guidance and an action plan for doing so.
Folks nearing retirement can work with an adviser to adjust their investment strategy, and those gearing up to make a big purchase, such as paying for a college education or buying a home, can talk through alternative options.
At the end of the day, it's nearly impossible to recession-proof your money, but a good financial planner or investment adviser can help you protect it.
SmartAsset's free tool can help you find a financial adviser to protect your money »
- More financial planner coverage
- Everything you need to know about financial planners
- 5 times you should consider meeting with a financial planner
- People with a financial adviser say they aren't just better with money - they're happier with life overall
- Here's how much a financial advisor costs