Practice Management Canada: Financial Plans Attract Assets: WSJ Article
From: The Wall Street Journal
By: Evelyn Juan
Financial planning isn’t just about offering holistic financial advice. Done properly, it should also keep assets flowing into the financial adviser’s business, and leave clients satisfied.
In a survey released recently by Vancouver-based research firm Vision Critical, Canadian investors who have a personalized financial plan tend to allocate more of their assets to their advisers and are significantly more satisfied with them.
The survey was conducted among more than 20,000 Canadian investors across different sectors: emerging affluents who have C$25,000 to less than C$100,000 in investable assets; mass affluent with C$100,000 to less than C$250,000 to invest; affluent investors with C$250,000 to less than C$1 million to invest; and high-net-worth investors with at least C$1 million in liquid assets.
Roughly 76% of those surveyed who have personalized financial plans said they are willing to share their assets with their advisers, while 68% of those who don’t have a personalize financial plan would be willing to do so. In terms of willingness to recommend their advisers, 55% of those with a financial plan said they are willing to refer their adviser, while only 35% of those who do not have a plan would do so.
“We’ve seen how financial advisers are engaging their clients through financial planning,” said Demitry Estrin, senior vice-president for financial services at Vision Critical. Aside from having a personalized financial plan, clients who have been contacted more frequently by their advisers show greater satisfaction with their broker.
