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.
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.