In the latest Financial Professional Outlook quarterly survey of 400 financial advisors , Russell Investments says it found that clients are at risk of falling short of their financial goals if corrective action is not taken.
Forty-four percent of advisors considered up to a quarter of their client base to be at “significant risk,” and 36% considered a quarter to a half of their client base to be at “significant risk.”
When asked why clients were vulnerable, about a quarter of advisors surveyed said clients are not willing to save enough (24%) or simply do not have enough money (22%). Other respondents cited “overall market risk” (20%) or “clients holding portfolios that are too conservative” for their retirement (17%).
“I see my overwhelming challenge to be convincing clients about the need to either work longer or save money,” said Suzanne Uhl-Melanson of Commonwealth Financial Network in a press release.
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According to Michael Wells at Moors & Cabot, Inc., “It comes down to one word: discipline.”
Phill Rogerson, managing director, consulting services for Russell’s Private Client Services business, added: “In today’s environment, it is important to focus on what you can control as an investor – such as your savings rate – and be cautiously prudent with the things you can’t control, such as the markets.”
The results of the survey also indicate a greater level of advisor certainty about equity markets over the next 12 months.