Study: Only 4 in 10 small businesses seek financial advisors
By National Underwriter
Warren S. Hersch
More than 4 in 10 small business owners want the help of an advisor to take care of family financial needs, but only one in four owners are addressing this concern with an advisor, according to a new report.
Securian Financial Group, St. Paul, Minn., published this finding in a new survey, “Small but Mighty: Growing Opportunities for Financial Advisors and Small Business Owners.” The study builds on an earlier 2009 survey of small business owners and polled 453 SBOs.
The report finds that 41% of SBOs want the help the advisor to take care of family financial needs, but only 25% of owners are addressing this concern with an advisor.
Rising healthcare costs top the list of concerns among small business owners.
Seventy-six percent of respondents cite rising healthcare costs as a top concern, followed by making a profit (74%), the state of the economy (72%) and addressing the financial needs of their families (66%). Other top concerns include building wealth (58%), developing a personal retirement plan (53%) and preparing a business exit strategy (38%).
Almost a third (32%) of SBOs have never used an advisor and 17% are not currently using one, the report discloses. SBOs who are using an advisor do so for personal planning needs only (19%), business needs only (5%) and business/personal needs (27%).
Just over one in 10 (11%) of SBOs who are using an advisor say they plan to stop, but the same percentage say they used one in the past and plan to start again. A greater percentage of respondents (31%) than is the case currently (27%) say they plan to use an advisor to address business and personal needs.
Nearly half (48%) of SBOs say they obtain life insurance through an advisor as compared 34% through their own efforts. But just 38% say they develop a personal retirement through an advisor, a smaller percentage than those who say they do so through their own efforts (44%).
Originally published on LifeHealthPro.com