In the first two columns of this three-part series, it was pointed out that high-net-worth business owners have significant unmet financial needs from both a business and personal financial planning perspective. The next questions to be addressed are:
==Who is, in fact, serving their needs?
==Are there opportunities to break into this market as an advisor?
Traditional thinking has it that this market is already saturated with advisors, who are commonly accountants. In this year’s Phoenix Wealth Survey, we explored these commonly held beliefs and examined this issue from a different angle of interest to life insurance practitioners.
HNW Business Owners Largely Depend on Advisors
Much of the research on business owners has explored the advisor issue using the terminology “primary financial advisor.” In keeping with this approach, our research confirmed the traditional viewpoints regarding this market. We determined 71% of high-net-worth business owners have a “primary financial advisor,” indicating HNW business owners are more likely to be working with a primary advisor than other members of the wealthy population. That being said, it could be argued the 29% without a primary advisor also represent a sizable market waiting to be served.