Properly investing money in order to get a significant return on investment requires knowledge and information, and financial advisors can provide that.

A Spectrem Group study reports that 72 percent of investors believe working with a financial advisor improved their knowledge of investing. Seventy percent of investors with a net worth of between $500,000 and $1 million (not including primary residence) said financial advisors improved their investment returns. Only 2.5 percent overall said they saw no benefit in working with a financial advisor.

The study revealed that 39 percent of investors regularly work with a financial advisor, but that number climbs based on the investor’s net worth. Among Ultra High Net Worth (net worth between $5 million and $25 million not including primary residence) individuals, 56 percent work with a financial advisor.

Fifty-six percent of business owners use a financial advisor, and 60 percent of senior corporate executives employ investment advisors.

Among investors who work with a financial advisor, 64 percent said it provides a wider range of investment opportunities, and 57 percent said using a knowledgeable financial advisor provides them with peace of mind.

Only 21 percent listed “fear of being taken advantage of” as a disadvantage of working with a financial advisor.

From a Spectrem study of Mass Affluent (net worth under $1 million NIPR) investors, almost 70 percent said they were satisfied with their advisors’ performance. Less than 30 percent of Mass Affluent investors, and 41 percent among Ultra High Net Worth ($5 million to $25 million NIPR) investors, had a bad experience with an advisor. That number does go up above half (56 percent) for UHNW individuals with net income greater than $15 million.

Almost 60 percent of both Mass Affluent and UHNW investors said they would recommend their advisor to someone else.

There is concern about people who offer advice on financial products but are really just out to make a quick buck. That’s why the federal Securities and Exchange Commission and state governments offer guidelines for selecting financial advisors who are regulated and licensed.

The State of Illinois has gone so far as to set up a website named “Avoidthescam.net” to help investors determine whether they are dealing with a reputable and reliable financial advisor. Many Secretary of State websites offer such advice as page links on their own SOS website.