NU Online News Service, March 10, 2004, 1:59 p.m. EST – Insurers are in a good position to sell financial advice to small investors, according to new report from Cerulli Associates Inc., Boston.[@@]
Analysts at Cerulli, a financial services research firm, note that U.S. residents with less than $100,000 in investable assets and $250,000 in net worth control only about 1% of total U.S. household investable assets.
“Mass market” investors may hold a total of as little as $130 billion in assets, and they are reluctant to pay ongoing fees for advice, the Cerulli analysts write.
In the past, fewer than one-third of mass market investors have risen into a higher wealth tier, the analysts warn.