Working with the Working Investor



One of the primary reasons an investor starts a professional relationship with a financial advisor is to plan for retirement. But the wise investor begins that planning years before they plan to retire.

While you may have many clients who are already retired, much of your client base in still in the working world. And today, the working world is an entirely different place than it was one year ago. Those investors who are employed have seen much of their work routine impacted by the coronavirus, and they are likely to have an entirely different set of questions and concerns than they had one year ago.

Spectrem’s new study Working with the Working Investor examines the mindset of your client who is still gainfully employed, and who has an entirely unique set of pressures to deal with than that of your retired client base.

The following are some of the ways advisors work differently with working investors:

·        A majority of working investors like to be actively involved in management of their investments, and enjoy the process. But they may find it difficult to manage their portfolio and their work at the same time. Your task is to help them maintain their interest by working with them to provide the information they need to be able to be successful as they participate when time allows.  

·        Working investors are performing a balancing act with their portfolio and investable assets. While paying for their immediate needs, which includes a mortgage and perhaps a child’s education, they are also attempting to create a retirement income stream they can access when they are no longer working. Your task is to guide them through the ever-changing personal financial needs while keeping a focus on investing available assets for future use, such as in retirement.

·        Personal concerns for working investors change as the investor ages. Millennials and Gen X investors are likely thinking about paying for their children’s education, but some may already be considering the health care needs of their aging parents. These concerns change over time, and advisors must be cognizant of when a client’s balance leans in a new direction.

The Spectrem study examines working investors from all possible angles of their investing and financial needs and interests, and occasionally compares them to your retired clients to indicate how they differ. 



©Spectrem 2020

Keywords: working investor, advisor, Spectrem, retired, college, health care, employment, coronavirus