A Snapshot Of How Advisors See Themselves

How clients, bosses or even other family members perceive financial advisors is often different than how those very same advisors see themselves.

In a nutshell, many see themselves as financial planners who will be looking for more support to grow their practices, at least while they remain in the industry, according to new research from consultant Howard Schneider, head of Practical Perspectives.

Advisors expect their role will evolve toward acting as a planner, concierge or educator helping to guide clients rather than functioning as an investment manager, said Schneider, who compiled the findings in a report titled “The Changing Role of Financial Advisors.”

With many aspects of investment management becoming commoditized, in part thanks to computer portfolio rebalancing algorithms, it makes sense for advisors to move deeper into planning.

The survey of 350 advisors, almost half of whom managed between $50 million and $250 million in assets, was conducted online in August.

Advisors surveyed worked at wirehouses and regional brokers, independent brokers, financial planners, and registered investment advisors.

Survey Findings

When advisors look in the mirror, here’s what they see:

*36 percent position themselves to clients and prospects as a financial planner and 32 percent expect their greatest impact to be as a planner, the survey found.

*60 percent expect their key challenge in the future will be attracting new clients and assets.

*43 percent said a key risk in the future will come from managing compliance and regulatory requirements.

*48 percent said it is critical for them to receive more support to that they can build or grow their practice.

*In five years, 55 percent expect their primary client segment to consist of baby boomers, 33 expect say their primary client base will consist of Generation X, and 6 percent indicate the client book will consist of Generation Y.

*33 percent expect their practice to experience significant growth.

*63 percent expect more support through digital or technology platforms in the future.

*36 percent expect to no longer be working full time as advisors in 15 years.

InsuranceNewsNet Senior Writer Cyril Tuohy has covered the financial services industry for more than 15 years. Cyril may be reached at cyril.tuohy@innfeedback.com.

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