Research: Client and advisers having early connection key to longevity

Research shows that advisers and investors connecting early on in their relationship is critical for longevity. Many investors reach what the researchers called an ‘inflection point’ in their 50s where they reach out to a financial adviser or start going it alone as a self-directed investor.

Cerulli, global research and consulting firm based in Boston, USA, published the research, saying advisers need to connect with investors before this decision is made.

There are several types of investors at this inflection point: self-directed, adviser-seekers, or adviser-reliant. Adviser seekers are the ones to watch, because they have the characteristics of self-directed investors but actively seek more or new advice.

Cerulli director Scott Smith said, “Investors in their 50s are at a crossroads. These former advice seekers can either turn over control to their trusted advisors or use the knowledge they’ve captured over the years to take a more active role in the ongoing management of their portfolios long-term.”

Advice seekers peak at 59 per cent at age 30-39, then drop to 48 per cent at ages 40-49. They want one-on-one help, but may not have the assets to drive potential advisers to their doors. Creating a valued relationship with these investors as they mature into great clients needs to happen before this juncture.