Periods of volatility are a given for investors, but that doesn’t stop clients from becoming increasingly nervous during uncertain times, such as the current upheaval caused by tariffs and geopolitical tensions.
The fear is widespread, with 70% of advisors telling a new survey from Edward Jones and Cerulli Associates that their clients are more stressed about market volatility than they were five years ago. More than four in ten identified increased client stress related to retirement planning.
But most advisors are focused on the long term and keeping clients on course, rather than making knee-jerk decisions. Almost half of advisors (47%) said that they do not plan to make changes to clients’ financial plans because of tariffs, with four in ten saying the same in relation to geopolitics and market volatility.
Despite the current challenging conditions, 74% of respondents said their clients remain upbeat about their financial future.
“As financial advisors, we hear our clients’ concerns about market volatility and the news cycle's hyperfocus on these topics. We can add the most value when we help them cut through the noise and clearly understand the impacts on their financial goals,” said Beth Stenz, financial advisor at Edward Jones in Erie, Colorado.
The research shows that inherited wealth is a key focus, with 51% of respondents saying this was the catalyst for clients engaging with them initially.
For those passing on wealth, advisors who took part in the survey said clear estate planning documents and effective communication are vital. Respondents say their clients most commonly use investment or retirement accounts (92%), trusts (74%) or real estate (60%) as methods for inheritance.
Financial planning is playing a more important role in advisors’ businesses with 51% already offering a comprehensive ongoing planning advice with this expected to rise to 59% in the next two years; and 30% said financial planning resources are one of the most valuable elements their firm provides.
The research also found generational variations in what clients believe is most important for a financially fulfilled life: Millennials want to own a home, Gen X and Baby Boomers are focused on retiring as desired while Silent Generation clients prioritize leaving a legacy.
Chicago-based Mesirow Fiduciary Solutions adds flexPATH's plan-level outsourced fiduciary book, boosting its retirement market reach to $164 billion.
Also, Raymond James's employee advisor channel adds breakaways from Wells Fargo and Stifel, while UBS welcomes an ex-Morgan Stanley duo in Indiana.
It promised guaranteed principal and 10% monthly returns. The SEC says it invested nothing.
Ten years after entering the fee-based annuity market, MassMutual Ascend says nearly half its lifetime sales came in the past two years alone – but barriers remain among fee-only advisors.
Amplify, WealthReach, Zeplyn and Zocks have unveiled partnerships aimed at automating portfolio management, content creation, account opening, and client communication.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
