Why don't people follow the doctors orders when they get sick or go through medical procedure. I just don't understand this mentality. A recent study by Quest found that over 60% of Americans don't follow the doctor's prescription medicine orders. Patients will cut the amount in half, skip a day, or stop taking the meds completely. I have many family members who completely ignore what the doctor tells them. Doctors are highly knowledgeable, trained experts, trying to help the patient heal and get better. Why do so many blatantly disregard advice that will help them?
I ask myself the same question about financial advice. Unfortunately, the majority of Americans either don't follow or seek out advice from qualified financial planners. In 2010, only 28% of Americans used a financial planner*. As finances and laws have become more complex there is greater need to work with someone to help individuals meet their personal financial goals. These do-it-yourself investors have plenty of information available either through financial planning websites, publications, books and free online tools through brokerage websites. The numbers show that the average working person in their 60's has only $144,000 in their 401k**.
Of the 28% who do use a financial planner, I bet there is large portion of clients who don't follow the directions of their financial planner. I have experienced it and have heard other colleagues complain about the lack of follow through by some clients. Clients will ignore financial plan reports, requests for more information, and issues that need immediate attention.
Just as a doctor may say you need to stop smoking or start eating better, a financial planner may have to tell someone they are spending too much or need to make certain adjustments if they want to retire. For better financial health, actively participate with a Certified Financial Planner and follow their advice.
*http://www.cfp.net/media/release.asp?id=253
**http://www.ebri.org/pdf/briefspdf/EBRI_IB_011-2010_No350_401k_Update-092.pdf
