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December 14, 2021

What are clients seeking in advisors?

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Jeff Roush

Chief Operating Officer and Co-Founder

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'Knowing the risk you have and having the risk you want' is a key component of the client conversations, once you establish a foundation of relationship trust.

 

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I found a recent study, released via Wealthramp and Pam Krueger (CEO), compelling and worth attention. It speaks strongly to the ever-evolving service vision clients are seeking from their advisors. I especially found it focused around clients’ desires for financial planning improvement, education and managing portfolios more effectively. Wealthramps' timely findings are based on a survey of more than 1,000 U.S. adults with investable assets of between $250,000 and about $2.5 million.

Some points I focused upon: 

  1. Seventy percent of high-net-worth investor Investors said their biggest consideration is having full financial planning to ensure they don’t run out of money in retirement. Sixty-five percent cited education that helps them become smarter investors as the biggest consideration.
  2. In addition, 64% pointed to “more efficient management of ongoing investing tasks to optimize performance,” such as rebalancing and tax-loss harvesting, according to a press release.
  3. Investors, especially millennials, also want advisors who can provide an appropriate mix of digital and personalized services.
  4. Eighty-three percent of millennials were looking for better coordination among digital tools, robo-advisors, and their financial advisors.
  5. They also want “frictionless integration” of digital currencies into portfolios, and access to new and additional investment vehicles that match their desire for socially responsible investing, according to a press release.

All the elements above should be finely woven into the concept of balancing the tensions of risk, return, taxes and expenses in an understandable manner to the client. I admit my bias of “Knowing the risk you have and having the risk you want” as a key component of the client conversations, once you establish a foundation of relationship trust. I also understand advisors must weave in all the other tensions I shared earlier. In the end, though, the true risk resides in not meeting the clients’ goals and expectations.   

Source: Barrons