The 5 questions sitting front of mind for advised clients
Natixis Investment Managers has highlighted the top five questions that Australian financial advisers are hearing from their clients at the moment.
The firm’s research, in collaboration with CoreData, uncovered the most common queries that clients are asking their advisers amid greater economic volatility, higher cost of living and interest rates.
It found that 85 per cent of clients are asking if they will reach their goals, and 77 per cent are asking if they are protected from market downturns.
Some 73 per cent are inquiring what they need to outpace inflation, 65 per cent are asking how to preserve and pass on wealth, while 61 per cent are questioning why they should get back into the market if cash is so attractive.
“With the current economic environment creating uncertainty among investors, utilising an adviser is one of the best ways Australians can ensure they will achieve their financial goals,” said Louise Watson, Natixis country head for Australia and New Zealand.
“Among uncertainty, it’s important to incorporate defensive assets to protect against the unforeseeable like changes in market sentiment, and as always advisers play a crucial role in educating their clients on market movements, return expectations and across asset classes.”
In addition, Australians’ fears surrounding the upcoming US election were confirmed, Natixis stated, with 51 per cent of clients wondering whether they should be concerned about their investments in the lead-up to 5 November 2024.
More than 50 per cent of Australian advisers believe that continued scepticism of the US election results will have a negative impact on markets, and 49 per cent think the election result has not been priced into markets yet.
Natixis’ research also assessed the impact of the intergenerational wealth transfer on advisers’ relationships with clients. It revealed that 40 per cent of Australian advisers said the wealth transfer threatens their business, and 45 per cent are concerned they will not retain the assets from clients’ spouses or children.
In comparison, 46 per cent of advisers across the globe said the intergenerational wealth transfer represents an existential threat to their business, and 43 per cent are concerned they will not retain assets from clients’ spouses or next-generation heirs.
Watson continued: “The challenges and opportunities posed with the generational wealth transfer are great, and the next two decades, paired with the quality of advice review, and the digital advice revolution could change how advisers operate their practices in unpredictable ways. What’s clear is that Aussies still need an adviser now more than ever, and keeping the family involved is key.”
AUTHOR
Jasmine Siljic
Recommended for you
With Finchley & Kent coming in second place for adviser growth in 2024, its managing director shares why word-of-mouth referrals have been critical to its success.
The platform market is more likely to grow than consolidate in the upcoming years, according to platform expert Recep Peker, as the adviser cohort becomes a valuable target market.
Advice veteran Paul Harding-Davis is to step down from Brisbane licensee AdviceIQ Partners after eight years, and the business has appointed a new general manager.
Insignia Financial has looked internally to appoint its chief technology officer, completing the executive team announced to implement its new operating model last July.
