A roundup of some of the more unusual items that crossed our desk recently.
May 2014, Boston. New research from global analytics firm Cerulli Associates finds that 53% of advisors' clients are between 50 and 70 years old.
"Advisors are finding it increasingly difficult to attract young investors," states Kenton Shirk, associate director at Cerulli. "The endless availability of online resources, as well as easy-to-use direct platforms is diminishing the need for advisors within the do-it-yourself generations."
Cerulli's Advisor Metrics 2013: Understanding and Addressing a More Sophisticated Population report focuses on advisor trends and consumer information, including market sizing, advisor product use and preferences, and advice delivery.
"eRIAs are emerging threats to advisors. They are able to deliver scalable offerings at extremely low costs," Shirk explains. "Advisors must understand that it will be nearly impossible to compete on price."
"To win clients in this market, advisors need to differentiate their offerings and deliver things that eRIAs cannot, such as sophisticated tax planning and long-term care advice," Shirk continues.
Cerulli encourages advisors to branch out beyond offering only asset allocation and retirement advice to attract new clients. If advisors can offer or team with tax planning professionals, they will be able to offer tax and estate advice to clients. Long-term care decisions also impact the financial picture of families and should be considered a part of retirement planning.