A quarter of households aged 50-59 are "advice opportunity" households, a new study by
"We define 'advice opportunity' households as those that indicated a need for more financial and investment advice, as well as a willingness to pay for advice services,"
For those nearing retirement, ongoing advice is especially essential, the study points out. “Some early retirees really just need more handholding…especially in the midst of America’s crumbling pension system,” Stamper explains.
But from the client perspective, is “handholding,” as Stamper calls it, worth the 1% to 3% of assets in advisor fees?
“While a lot of investors are wary of professionals, pre-retirees want help from advisors to avoid making big mistakes that could have long-term impacts,” Samper says, noting that that emotional support is often worth the price of an advisor for many clients. “Advisors should help clients focus on the complexities of planning for retirement, such estate planning and tax implications of client decisions,” he added.
Cerulli's study sheds more light on recent findings from
This group is often referred to as the sandwich generation, stuck between dependent kids and aging parents who need caregivers. Of those providing support to both an aging parent and a child, only 28% said they themselves live comfortably. The financial burden has been mounting in recent years, according to
BlackRocks's survey found that this demographic is most likely to feel "not at all in control" of their financial future and "not at all confident" about making the correct savings and investment decisions.
Here’s what Stamper says advisors can do to better target this client demographic:
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