Why clients withhold financial info from advisors

When asked to describe the aspects of their financial situation they have not shared with their advisor, 36.9 percent of the survey respondents identify health concerns, and 32.5 percent point to private investments they’ve made.

The following are other topics respondents withhold from their advisor:

• Personal loans to friends or family members — 29.6 percent;
• Debts incurred — 25.7 percent;
• Stocks purchased — 18 percent;
• Real estate purchased — 15.5 percent;
• Life insurance policy purchased — 11.7 percent;
• Spouse started a new job — 10.2 percent;
• Started a new job — 8.7 percent;
• Other financial-related topics — 4.9 percent.

As to the reasons why they choose not share this information with their advisors, 51.5 percent say the topics are “too personal.” Significant percentages flag the following:

• Believe the information is beyond the realm of financial strategy — 44.7 percent;
• Embarrassed — 20.4 percent;
• Happened recently and have not had an opportunity to share yet — 16 percent;
• Do not trust or feel uneasy sharing every detail with the advisor — 10.7 percent.

When questioned what changes they would make if their advisor were privy to the undisclosed financial information, respondents answer as follows: