Half of advisors want less clients

Half of advisors want less clients

According to the September 9th release of Russell Investments’ Financial Professional Outlook, a quarterly survey of U.S. financial advisors, half of the polled respondents said they would like fewer clients than they currently manage.

The average client base for respondents is 392 customers, which is more than participants like to manage. Citing, instead, an ideal base at 210 to 240 clients; the average desired client base being 21.

The 43% of advisors who indicated they wanted to grow their client base were operating with lists averaging only 140 clients and these respondents wanted to increase to about 238 clients.

Forty-five percent of advisors were also switching their clients to fee-based accounts to bring in new revenue and 16% were spending money on new technology to manage low-income clients, which allows for more time with clients who generated more income.

Another strategy to raise income levels, according to 39% of respondents, is to sell more annuities. Yet, based on an NU Online News Service article, most advisors already make at least some use of annuities and among those who do not, resistance to adding these to the product menu is high.

Note: The survey was conducted between July 27th and August 13th, had 348 responses representing 132 national, regional and independent advisory firms.