Reasons why Clients Leave Financial Advisors

A third of the nation's financial advisors claim it's harder to keep clients than it was five years ago. On top of that, 75 percent of these advisors say those with less than $100,000 to invest are the most difficult ones to retain.

If you're a CPA and/or financial advisor, you may be experiencing much of this in today's marketplace. Why do customers leave?

It all boils down to opinions from others. Clients have high expectations, and are greatly influenced by what they hear, rather than by experience. Expectations, too, have become less realistic. One advisor said clients are still building up their assets, but looking for a short way accomplish this.

With 24/7 news all around us, advisors compete against media opinions, and again, are influenced by what others have to say.

"Professional advisers fight a daily battle with investment prognosticators and pundits in America's infomedia culture – a wealth war for the hearts and souls of their clients," says Jack Sharry, president of the Private Client Group at Phoenix Investment Partners. "This is a major change from the world advisers operated in five years ago, but it is investors who are most at risk of losing in this war."

Statistics were provided by Phoenix Investment Partners.


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