It Pays To Pursue The Unadvised

The study also revealed that many mass affluent households are self-directed, even those with financial advisors. It’s important for financial professionals to define respective roles clearly in the client-advisor relationship.

Many mass affluents may prefer an omnichannel advice model that allows them to select different methods for different financial activities. For example, they may prefer online tools for simple activities (such as charitable giving), access to a bullpen of advisors with knowledge on specific topics (such as life insurance), and access to a dedicated advisor to develop more complex and personal financial plans (such as financial planning, retirement planning, investments and tax advice).

This omnichannel approach may work to satisfy self-directed clients and still ensure an essential role for the personal financial advisor.

So, even though the unadvised mass affluents say they prefer to manage their own finances, research from LIMRA Secure Retirement Institute has consistently shown that professional advice can make a big difference. Secure Retirement Institute studies show that when mass affluent consumers work with a financial professional, they are more likely to contribute to a retirement plan (78 percent) compared with those who do not have an advisor (41 percent). They also are more confident in their retirement security (71 percent versus 43 percent), and eight in 10 believe their advisor helps them in ways they could not achieve on their own.

The opportunity and the need are there for those advisors who are motivated to pursue the unadvised.