Half of Financial Planners Don't Have a Financial Plan
By Hal M. Bundrick
NEW YORK (MainStreet) Perhaps financial planners should begin each client meeting with a disclaimer: "Do as I say, not as I do." While 40% of financial advisors say they intend to retire within the next 14 years, nearly half (46%) of them do not have a retirement strategy in place to accomplish that goal, according to a study conducted by the Financial Planning Association Research and Practice Institute.
The lack of retirement planning impacts an even greater number of advisors who need it most. According to the survey, two-thirds (66%) of advisors who are over 65 don't have a retirement plan in place.
Other findings of the research include:
- Only 25% of advisers say they have a formal succession plan in place.
- Most (46%) advisors charge a fee based on assets under management and more (49%) plan on doing so in the coming year.
- One in five advisors (21%) charge commissions on investment products but fewer (18%) plan on doing so within the next twelve months.
- Only 7% currently charge an hourly fee for financial planning, estate planning, tax planning or consulting, but slightly more (8%) plan on doing so in the coming year.
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