Articles for Advisors

Spectrem Weekly Update: Wealthier Investors More Dependent On Investment Income Than Others

Prior to 2008, many retirees relied upon safe income producing investments to assist them through their retirement years.  But since the Great Recession, interest rates have been incredibly low and many of those investors switched their investments to stocks, still relying upon the return on those investments to assist them through their retirement.  Spectrem recently conducted research with affluent Retired investors to measure their reliance upon investment income and the impact of low interest rates on their overall investment strategy during retirement.

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Spectrem Weekly Update: Women - Stress and 2021: How FAs Can Help

Let’s face it.  As we enter 2021 everyone is sick of the pandemic and politics.  Spectrem’s recent research shows that women are particularly stressed about the current environment.  While many women are working from home, the level of concern regarding the health of their families, the requirements of their job and the volatile political environment are adding to their levels of frustration and unease.  Many are still assisting children who may be attending school at home.  How can financial advisors assist women in confronting the various challenges of 2021?

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How the Wealthy Generate Investment Income

Interest rates have been extremely low for many years.  Investors looking for investment income in this environment have few options or resources.  Interest rates on savings accounts are essentially zero, with yields on CDs and bonds being not much higher.  How exactly are investors finding investment income in these historically low interest rate times?  Who are the wealthy investors looking to in order to help them find new ways to generate investment income?

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Client Understanding of Fees

Many financial industry professionals and critics feel that investors do not understand what fees they pay to their financial advisor.  There have been several rules and regulations created in order to increase the level of transparency regarding fees.  Just how well do investors understand the fees they are paying?  What types of fees do investors prefer to be charged?  What types of services do wealthy investors expect to receive for the fee they are paying?

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Working Women With Kids at Home Are Struggling

Can too much of a good thing become a bad thing?  Is there such a thing as “too much family time”?  The pandemic has created a “new normal” for families where they are spending more time together, and this new environment has caused a blurring of lines between work and home, and school and home.  Working women who have children living at home are attempting to balance being a good employee and parent, all while being concerned about a pandemic.  Is this stress and juggling act taking a toll on working women with school age children?  You bet it is.

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Weekly Executive Update: Has Work-Life Balance Changed?

The year 2020 has brought significant change to how and where people work.  Parents with school-age children find themselves balancing how to help kids adapt to school via Zoom while learning how to effectively pursue their own careers.  No longer are children dropped off at school or put on the bus while parents then rush to their offices.  All of these changes have caused a reassessment of what is important and how and when do we prioritize the various components of our lives.  In the next few weeks Spectrem Group will be releasing new research with wealthy women entitled Wealthy Women and Market Volatility that explores how women are reacting to this new environment and how it impacts their financial and investment attitudes.

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Weekly Executive Update: Defining Trust in a World of Distrust

Americans are living through of period of time when it is hard to trust others.  Many of the major sources relied upon for information including government, media and even health providers have provided us with questionable information, often changing their recommendations dependent upon new information —- or arguably due to political persuasion.  During this uncertain time it’s more important than ever that individuals have someone that they can rely upon and trust, especially with their finances.

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Thankful for Market Recovery

With the Thanksgiving holiday in just a few days many investors are ruminating about what they are thankful for.  Some investors may find it challenging due to the market volatility and economic shutdown that occurred in the spring of 2020, as it had a significant impact on investors and households across the U.S., both economically and emotionally.  More optimistically however, months later the markets have rebounded, yet the economy is still slow to recover especially for business owners of all types.  So how are wealthy investors feeling about their own financial recovery several months after the crash in March of 2020?  Overall, 58% of investors believe that their financial situation today is the same as at the start of the pandemic.  This feeling varies dramatically, however, based upon net worth.

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Weekly Executive Update: How Many Advisors Do You Need If You're Really Rich?

It would be easy to presume that wealthier households need more financial advisors than those with less wealth.  Research conducted by Spectrem Group with households with over $25 million of net worth proves that this is not necessarily true.  Not only do numerous ultra-wealthy households rely on only one advisor, but the largest percentage of these wealthy investors aren’t also even that reliant upon the advice of their financial professionals.

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Does a Vaccine Fix Anything?

Talks of a vaccine have been all over the news, with the potential of one being available, if not broadly, before the end of 2020. This has been greeted with cautious optimism, as many people are fearful of taking a vaccine that has been expedited through the FDA approval process.  Other individuals are concerned that we do not have any evidence of long-term effectiveness or a study that shows there would not be long-term side effects.  Despite the reluctance on the part of many Americans to take the vaccine, that seems to be a tipping point that individuals point to for when life can go back to business as usual.  Will Americans actually resume their activities like they did prior to the pandemic?

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