A Majority of Advisers Are Investment, Not Financial, Planners
Many advisers are misclassifying the types of services they provide, according to Cerulli Associates. While compiling their annual Quantitative Update: Advisors Metrics, a sourcebook for industry professionals, the research firm found differences between the types of services advisers said they provide and the services they actually do provide.
The majority of advisers (59%) described themselves as providing financial planning services. After reviewing the services offered, Cerulli concluded that 56% of the total respondents were actually investment planners. Though many advisers do provide some financial planning services, most of their efforts are focused exclusively on asset accumulation strategies.
A big reason why advisers focus on investment planning is their targeted client base. Cerulli says individuals holding investable assets of between $500,000 and $2 million comprise the largest pool of potential individual investor clients. Individuals with this level of wealth often are not in need of estate, charitable, business planning or private banking services, according to the research firm.
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