This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Advisors Reveal Most Common Advice to Clients

By Hal M. Bundrick

NEW YORK ( MainStreet)--Save more and stop living beyond your means. Those are two of the most common pieces of advice from financial advisors to clients, according to new research from the Principal Financial Group. More than three-quarters (77%) of advisors surveyed urge their clients to increase retirement savings and create a financial plan (73%). Other guidance frequently offered were: pay down debt (53%), spend less (32%), see an advisor regularly (22%) and create an emergency fund (19%).

Is there a magic number to achieve retirement goals? According to the research, financial advisors say that clients should set back 17% of their pay in order to generate sufficient income during retirement.

Good advice comes with good information, but advisors believe that clients aren't always being totally upfront with them when offering a current view of their financial status. 65% of advisors say clients don't admit living beyond their means and 44% of advisors believe that clients mislead them about the amount of debt they owe. Other common areas where clients are less than forthright include: admitting risky financial behaviors, their level of disposable income, family problems, health issues and their salary.

In spite of many of clients having financial plans, they still aren't saving enough to meet their retirement goals, according to survey respondents. Over half of the financial consultants polled (55%) said that only about one-quarter of clients actually begin saving early enough in their career to achieve the recommended level of retirement savings.

But in spite of all of the challenges in the process, investors relying on guidance from advisors generally are better prepared for retirement, according to additional research compiled for Principal:

  • They were significantly more prepared for a comfortable retirement (61%) compared to workers who do not use an advisor (29%)
  • They made solid progress toward their long-term financial goals (74%)
  • They were more financially confident since they began working with an advisor (73%)
  • They were extremely happy with their current financial well-being than employees who do not see a financial professional (54% compared to 29%)

Advisors believe the greatest challenges they face are regulatory and compliance issues (51%), followed by economic uncertainty (39%) and market volatility (37%).

--Written by Hal M. Bundrick

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%
YHOO $45.10 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs