Advisor-Investor Survey Reveals Top Concerns, Priorities

Investors and their advisors see eye to eye on several things: managing volatility, protecting assets and saving for retirement.

However, advisors may underestimate their clients’ concerns about healthcare costs and taxes, according to Jefferson National’s second annual Advisor Authority study, released Monday. Investors also revealed their three main priorities when choosing an advisor.

Investors focused on preserving their wealth and other factors that immediately affected their bottom line, the study found. Thirty percent cited both protecting assets and cost of healthcare, 29% saving enough for retirement second and 26% taxes third.

Harris Poll conducted the online survey in the U.S. in March among the 683 financial advisors, 440 of whom were independent RIAs and 243 broker/dealers, and 733 investors, ranging from mass affluent to ultra-high net worth.

Findings Highlighted

The new study included a 360-degree view on volatility—its causes, its effect and defensive measures to protect against it.

It found that 76% of advisors and 63% or investors said volatility would rise over the next 12 months.

Both groups agreed that the top causes of volatility were the U.S. presidential election, energy prices, U.S. Fed policy and instability in China.

Sixty-two percent of advisors indicated they were likely to revise their investing strategy in response, but just 41% of investors who felt pressure to take action.

Seventy-five percent of advisors and 72% of investors who said they would revise their strategy planned to invest more tactically, and 69% of both groups planned to invest more conservatively.

In order to attract the next generation of investors, 36% of advisors said they were working more closely with a client’s family and children.

The same percentage said they were increasing use of innovative techniques such as social media, 26% were using mobile technology and 24% were offering personalized holistic advice.