What areas of financial planning are investors prioritizing in their discussions with financial advisors?
Financial knowledge is important to Affluent investors, and while many have an independent streak and rely on their own research and investment-smarts before making financial decisions, others are turning to financial advisors to fill the knowledge gap. What areas of financial planning are investors prioritizing in their discussions with financial advisors?
The Insured Retirement Institute (IRI) has released preliminary results of a new survey that finds that the most common areas of discussion between investors and a financial professional are:
Retirement planning (88 percent)
Taxes (40 percent)
Estate planning (38 percent)
Insurance coverage (37 percent)
Affluent investors see many advantages to working with a financial advisor, primarily that it improves their knowledge of investing, according to a Spectrem’s Millionaire Corner survey. The IRI survey underscores the importance of financial literacy. “When we measured understanding of various financial products (including stocks, bonds, and target date funds) not once did a majority of investors indicate that they had comprehensive knowledge about the product in question,” IRI President and CEO Cathy Weatherford said in a statement.
What are investors talking about when they talk to their financial advisors? Regarding retirement planning, eight-in-ten have discussed the level of savings needed as well as retirement age, the IRI survey found. Two-thirds want to discuss retirement lifestyle issues such as housing and relocation, while 57 percent want to discuss long-term health care. Four-in-ten have discussed strategies to maximize Social Security benefits.
Making the decision to consult with a financial advisor is the first step. The second is finding one who is a good fit and on the same page. Millionaire Corner’s Best Financial Advisor service is an invaluable and user-friendly resource to finding an advisor in your area, Advisors and firms are rated by actual clients on overall satisfaction, knowledge and expertise, responsiveness to requests, and advice given during the recession.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.