When Retired Investors Look For An Advisor



Retired investors who work with a financial advisor likely have had a relationship with that advisor for a long time.It is true, however, that advisors retire as well, and their long-time clients need to find a new advisor to work with. These potential clients could be very attractive to advisors because their portfolios are probably established, sizable after years of employment and investment, and many of the expenditures that complicate a portfolio for a younger person (education, mortgage, etc.) are quite possibly out of the way.

But, advisors do not often seek retired investors, for the reasons stated above: they likely already have an advisor or do not use one. The occasion of a retired investor searching for a new advisor is not often considered, although it happens every day.

Spectrem’s new study Preferred Sales Approach: Capturing the Wealthy Investor examines the ways investors like to be approached by advisors hunting for new clients. It reveals what methods are preferred, which are most often ignored, and reminds everyone that cold-calling still works on occasion.

The investors surveyed for the study included hundreds of retired investors, and their attitudes toward the subject of being approached by an advisor to create a possible working relationship are important for advisors to consider. Otherwise, you are missing out on a market of investors who often just want the security of having a professional provide a focus for their all-important but relatively static portfolio.

Just as with all investors, retired investors are not necessarily waiting for you to contact them. In fact, only 4 percent of retired investors who interact with an advisor from a cold call (compared to 15 percent of working investor who would do so).

When a retired investor needs a new advisor, many of them (61 percent) start by researching a firm. It might be the firm their previous advisor was aligned with, or it might be a firm they know of from life experience. But they are very likely to do their own research first.

What are those retired investors looking for in their research? Primarily, they are looking for an advisor they can trust, but that can only be built over multiple meetings or conversations. From a research standpoint, 45 percent of retired investors want to find an advisor who has expertise in areas they do not fully understand themselves. A similar percentage (41 percent) of retired investors are looking for an advisor who will provide them with services they don’t feel are available elsewhere; they might represent an audience of investors who are looking for a new advisor because their former advisor failed them, or those who cannot find the services they require from free internet pages.

The Spectrem study includes extensive comparisons of investor segments to determine which sales approach works best with which group of investors. Knowing how to approach a specific client base is the first step.




©Spectrem 2020



Keywords: retired, retirement, investors, advisors, Spectrem, sales