January 20, 2010

Optimism Returns for Both Advisors and Their Clients

SEI survey finds both advisors and their clients to be "cautiously optimistic."

This news item original appear on WealthManagerWeb.com on 1/19.

Optimism appears to be returning, albeit "cautiously," say advisors and clients, according to global asset manager and RIA services provider SEI Advisor Network, in Oaks, Pennsylvania. Perhaps it's not surprising, though, that risk management is important for both advisors and investors, according to the 442 advisors SEI surveyed in December and January. "While advisors focus on business risk, risk mitigation is a key theme with investors, according to the firm's January 14 announcement.

The "SEI Advisor Network New Years Survey, A Look Back and a Look Ahead," includes a list of top "Resolutions for 2010," which leads off with, 1) "Touch clients, centers of influence more regularly;" 2) "Use technology to improve business;" and 3) "Stress less, get healthier."

The subjects of "retirement"--64%, "economic rebound,"--62% and "implications of the federal deficit"--57%--"dominate current conversations with client," advisors in the survey assert, according to the report. In addition, 70% of advisors surveyed have, "adopted a more holistic planning approach."

Clients must be getting the message that diversification matters: 81% "believe they are better off because of the diversification provided through asset allocation," the results say. One surprising attitude emerged from the survey, though. Three-quarters of the advisors surveyed said that clients don't "believe dollar cost averaging works." For more details from the survey summary, please click here.

Comments? Please send them to kmcbride@wealthmanagerweb.com. Kate McBride is editor in chief of Wealth Manager and a member of The Committee for the Fiduciary Standard.

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