Why do Individuals Seek Financial Advice?

Abstract

Economists over time have looked at what factors drive individuals to make certain decisions and what influences their behaviors. Financial decisions are every so often complicated and individuals tend to make detrimental mistakes when deciding what financial actions to take. This paper explores the characteristics of individuals who seek financial advice from financial planners and examine the link between financial advice, financial market participation, income, age, gender, race, education and some financial indicators. Using data from the Survey of Consumer Finances, we try to determine what factors motivate individuals to seek financial advice from professional financial planners. We find that there are gender, race and age differences in the characteristics of individuals that seek financial advice from professionals.