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.

You may like these other stories...

Many firms these days claim the bulk of their new business comes from referrals, essentially saying their existing clients do all the business development for them. But this won't work unless you can build true client...
No field likes its buzzwords more than technology, and one of today's leading terms is "the cloud." But it's not just a matter of knowing what's fashionable. Accounting professionals who know how to use...
With tomorrow being Tax Day, you might see some procrastinators at your office filling out forms, printing out paperwork, or getting last-minute tax advice from their accountant so they can meet the IRS’s filing...

Upcoming CPE Webinars

Apr 17
In this exciting presentation Excel expert David H. Ringstrom, CPA shares tricks that you can use with pivot tables every day. Remember, either you work Excel, or it works you!
Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.