Financial AdvisorsWhile a majority of American adults use the Internet, according to a Pew Research Center study, it seems they’re not doing so to obtain financial advice. A new study released by Gallup in August 2014, reveals that 44% of Americans prefer getting their financial advice from dedicated human financial advisors versus 20% who prefer financial websites to help with retirement planning.

More investors also say they obtain financial advice from a firm that provides call center support, some 35%, or use a family member or friend for help, 29%, than financial websites.

The findings come from a Wells Fargo/Gallup Investor and Retirement Optimism Index survey that was conducted between late June and early July 2014. It focused on American investors with $10,000 or more in investments. The sample included 1,036 investors, age 18 and up, living in all 50 states and Washington, D.C.

The study aimed to determine what resource or resources American investors use to obtain financial advice. The main findings from respondents were:

  • Use of a dedicated financial planner: 44%
  • Use of an advisory firm’s call center: 35%
  • Friends and family: 29%
  • Online financial planning or investment websites: 20%

Gallup’s research also indicated that higher value investors and retirees with an estimated $100,000 in assets were much more likely than other investors to seek guidance from dedicated financial advisors than other resources.

Men and women were just as likely to use three out of four different resources. Men were more likely (25% to 14%) than women to use financial websites.

While the sources might vary, Gallup’s study did reveal that an overwhelming majority of investors do seek advice from somewhere. About eight in 10 (79%) of all investors surveyed used one of the four resources. Of that number, some 40% only use one source with 30% saying they use two. Seven percent got information from three resources and only 2% reported using all four.

While the survey shows that most investors feel advice is important, researchers say investors might be missing the boat by not taking advantage of more resources.

The study suggested that working with an advisor who uses online analytical tools could offer the best of both worlds. By bridging the gap, firms could provide investors with the human connections they seek while providing the best performance for investments.

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