Advisors who help clients focus on long-term goals report higher revenues according to a survey from Partnership for Retirement Education and Planning. Advisors who identified themselves as “planning experts” had “three times the assets under management and reported 40% higher annual revenue” than advisors who focused on individual products, the survey found. They also reported their typical clients held twice the assets as “non-planners.”
More than three-quarters of financial planners said their boomer clients felt a greater impact from the economic downturn than their other clients. Seventy-three percent said the downturn led their boomer clients to focus more on financial planning. However, nearly half of advisors surveyed said the majority of the motivation came from them, rather than their clients.
Most boomers, 78 percent, neglected planning because they didn’t understand its value. Seventy percent said they were embarrassed they didn’t have more assets.