Where Experience Meets Evidence
Dr. Lance’s Academic Research
How does working with a financial advisor relate to a person’s sense of financial success? That question was central to my doctoral research.
My 2023 dissertation examined the relationship between having a financial advisor and perceived financial success, alongside income, education, and other personal and household characteristics.
The question behind the research.
Financial decisions involve more than knowing which investment to choose. People bring different knowledge, resources, experiences, and priorities to the decisions they face.
I wanted to examine how having a financial advisor related to the way people assessed their own financial success. The study also considered whether that relationship changed when other characteristics were included in the analysis.
How the study was conducted.
The dissertation used a quantitative, correlational design and analyzed 944 records from the Health and Wealth 2016 dataset. The analysis examined relationships rather than assigning participants to work with an advisor.
The survey’s participation criteria included being a U.S. citizen age 24 or older, working full-time or being self-employed, and having at least $25,000 in investible assets. Those criteria matter when interpreting whom the findings may describe.
The outcome was perceived financial success: how participants rated their financial situation. It was not a direct measure of investment returns.
What did the research find?
In the initial analysis, participants who had a financial advisor generally reported somewhat higher perceived financial success than participants who did not. The relationship was statistically significant, but its explanatory strength was small.
The dissertation also examined income, education, age, and other characteristics through additional models. The complete paper explains the findings, methods, and limitations in detail.
How should the findings be interpreted?
An association does not establish that working with an advisor caused a person’s financial success. Other factors may influence both the decision to seek advice and how someone views their finances.
The findings reflect the study’s dataset, participant criteria, and methods. They do not guarantee results for an individual or establish that one advisor or investment approach is better than another.
Why research matters to my work.
Financial planning draws on finance, economics, behavior, and other disciplines. Research gives us a way to examine assumptions and ask more useful questions.
In my practice, I pair that interest in evidence with understanding your circumstances. We discuss your goals, available choices, and the reasoning behind recommendations. Your financial plan should reflect your own life and priorities.
Read the complete dissertation.
The Impact of Using a Financial Advisor
on Financial Success
William Lance Hocutt
Walden University, 2023
The full paper includes the research questions, literature review, methods, statistical findings, limitations, and recommendations for future research.
Bring your own questions to the conversation.
If you are considering financial advice, we can discuss your priorities, the services you need, and what working together would involve.
