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August 22, 2013 at 08:00 AM
Are your clients hiding important information from you that could help solve some of their financial woes?
A new survey says they are—particularly secrets involving health, marital and debt problems. Securian Financial Group’s survey, “Client secrets: What People Don’t Tell Their Financial Advisors,” delves into the information clients are withholding and why.
Securian surveyed 720 consumers and found that while 71% of those polled said they share with their advisors “all topics” related to their personal financial situations, nearly one-third (29%) say they haven’t told their advisors about everything that could affect their finances.
Of the 29% who withhold critical information, only 11% say it’s because of a lack of trust.
They survey notes that a “sizable portion” of those clients who withhold critical financial information from their advisors appear to fall in many advisors’ target markets:
- Nearly one-third are pre-retirees and retirees;
- Two-thirds are 40 and older;
- One-fifth are affluent, with $150,000 or more in annual household income, or mass affluent, with $100,000 to $149,000 income; and
- Among those who are employed, two-thirds are in professional or managerial careers.
What are these clients hiding?
Michelle Hall, manager of market research at Securian says that health and marital difficulties “rank high among the critical subjects clients do not discuss with their advisors,” while a quarter of clients with secrets carry debt their advisors know nothing about.
Clients “may not realize it, but personal matters can profoundly affect a family’s financial stability,” Hall says. Other secrets include employment changes and loans to others.
