Why clients withhold financial info from advisors
By National Underwriter
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.
- 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.
|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