By Warren S. Hersch
Nearly one-third of individuals have not shared certain topics related to their financial situation
with their advisor, according to a new report.
Securian Financial Group reveals this finding in a survey, “What people don’t tell their advisors and why.” The report polled 720 people age 30 and older who have a financial professional. About two-thirds of the respondents (68 percent) are “mass affluent” consumers with annual household incomes ranging from $50,000 to $149,000.
When asked to describe the aspects of their financial situation they have not shared with their advisor, 36.9 percent of the survey respondents identify health concerns
, and 32.5 percent point to private investments they’ve made.
The following are other topics respondents withhold from their advisor:
- Personal loans to friends or family members — 29.6 percent;
- Debts incurred — 25.7 percent;
- Stocks purchased — 18 percent;
- Real estate purchased — 15.5 percent;
- Life insurance policy purchased — 11.7 percent;
- Spouse started a new job — 10.2 percent;
- Started a new job — 8.7 percent;
- Other financial-related topics — 4.9 percent.
As to the reasons why they choose not share this information with their advisors, 51.5 percent say the topics are “too personal.” Significant percentages flag the following:
- Believe the information is beyond the realm of financial strategy — 44.7 percent;
- Embarrassed — 20.4 percent;
- Happened recently and have not had an opportunity to share yet — 16 percent;
- Do not trust or feel uneasy sharing every detail with the advisor — 10.7 percent.
When questioned what changes they would make if their advisor were privy to the undisclosed financial information, respondents answer as follows:
|Response||Percent selecting||Number selecting
|Increase amount I am saving||28.9%||59|
|Create a new financial plan||25%||51|
|Reallocate my investments||23.5%||48|
|Explore investment alternatives||21.6%||44|
|Decrease my current spending||20.6%||42|
|Purchase more insurance||10.3%||21|
|Divest specific investments||9.8%||20|
|Explore housing alternatives||7.8%||16|
|Take out a loan||5.4%||11|
Originally published on LifeHealthPro.com