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| News Briefs |
Uncertain Futures
07/31/2006
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Private investors say advisors fail to plan.
Affluent investors fear uncertain financial
futures and are not receiving strong advice about it from their advisors,
according to a survey released this week by Hartford-based Phoenix Companies.
Respondents claim their financial advisors are not doing enough to support
investors’ long-term needs, and are more likely to focus on wealth accumulation
rather than financial planning.
Only 47 percent of those surveyed
report receiving help with retirement planning; only 33 percent say they have
received tax-planning advice. Advisors also failed to discuss estate planning
with more than two-thirds of clients. Less than half received advice on asset
allocation, perhaps the most important strategy for building sustained wealth.
In response to this lack of guidance, the survey says that high-net-worth
individuals are changing their primary investment goal from high return on
assets to wealth preservation.
But investors themselves are also
failing to adequately plan ahead. Despite expressed concerns for the future, the
survey found that few respondents own or plan to own products that incorporate
risk management features and performance guarantees. The survey calls for
financial services firms to develop better products to meet the needs of
affluent investors. It also says that high-net-worth individuals need to become
more aware of potential risks.
The Phoenix 2006 Wealth Survey was
conducted during February and March. Those interviewed had a net worth of $1
million or more, minus any debts and the value of their home.
—Tim
Chan
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