Boomers Ditch Their Advisors

When the Dow Jones was at 14,000, was your financial advisor tops on your list to send your holiday card to?ย  Now with Dow hovering around 8500, do they even make your list.ย  Or is it easier to not open your statements and pretend that they donโ€™t exist.ย  Itโ€™s always easy to like your financial advisor then times are good and your portfolio is making money.ย  According to a study done by Phoenix Wealth Survey, many high net worth boomers are now making their own financial decisions.ย  There reason?ย  They donโ€™t see the value the advisor brings to the table to justify the cost.

Boomers Attitude Changes

During down economic cycles, boomers tend to look closer at their relationship with their advisor.ย  Where fees and commission may been an afterthought during the Bull Market, with the recent market collapse many question what value they are really getting.ย  Despite the current lack of confidence in their advisors, many speculate by 2010 that many of these boomers will be seeking council again with many of the sunset provisions being lifted.ย  They will be forced to pursue advanced estate planning issues that for now can be pushed to the side.

Surprising Boomer Concern

On every past survey amongst boomers, the primary concern has been the increasing cost of health care.ย  Now what tops the list as the Boomers #1 concern is inflation or purchasing power.ย  Where $1 million dollars use to be a significant amount (believe me, it still is),ย many are nowย worried that it wonโ€™t be enough to last them through their retirement years.

All this sums up to mean that boomers will need advisors to help them make difficult decisions when it comes to retirement planning.ย  Iโ€™m sure when the markets settle, and things are back to normal, the issue of fees will be pushed backed to the side and instead focus on what matters most: their financial health.

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