What happened to the clients of financial advisers in April?
Well, new research shows that eight out of 10 advisers (83%) within the Wealthramp network report that more than 75% of their clients can still afford to retire on time despite the economic turmoil caused by Covid-19.
“What we found is advisors are optimistic about the ability of their clients to retire on time,” said Pam Krueger, the founder and CEO or Wealthramp, which matches consumers with expertly vetted fiduciary advisors based on their investing priorities and is comprised of independent, fee-only financial advisors who work solely in the best interests of clients. “The optimism suggests the value of holistic financial planning and the impact it has on fortifying retirement savings.”
While the overwhelming majority of advisors within the Wealthramp network report their clients are able to retire on time, if clients do need to adjust their timeframes, 63% of advisors are recommending they extend it only by 1-2 years, said Krueger.
Other key findings:
Nearly two-thirds of advisors (63%) say approximately a quarter of their clients are looking to invest new money into the market right now. Moreover, nearly one in five Wealthramp advisors (17%) say that 25% to less than 50% are interested in these tactical strategies.
Nearly half of advisors (47%) say their clients are most focused on rebalancing and making adjustments to their investment portfolios, followed by a quarter of advisors (23%) who are working with clients to ensure they have enough cash cushion throughout this crisis, and just under 10% who are most focused on harvesting tax losses.
Having enough liquid assets is a particular concern of younger clients who receive a large portion of their income through stock awards. One-third of advisors say these clients are worried about how Covid-19 is affecting the valuation of their companies and are worried about their lack of knowledge around what they own and how stock-based compensation works.