Independent Investment Advisors Say Many Clients Worry about Maintaining
their Lifestyle in Retirement; 69 Percent Want to Leave a Legacy of
Financial Responsibility
SAN FRANCISCO, Aug. 27 /PRNewswire-FirstCall/ -- Sixty-one percent of
financial advisors say that having sufficient retirement savings to
maintain their desired lifestyle is a constant concern of their clients,
reveals Schwab Institutional's most recent Independent Advisor Outlook
Study. The study also finds that another 35 percent of advisors say their
clients worry about this at least some of the time.
Schwab Institutional is a leading provider of custodial, operational
and trading support to more than 5,000 independent investment advisors. The
semi-annual Independent Advisor Outlook Study measures the views of
independent Registered Investment Advisors (RIAs) on a variety of topics.
Nearly 1,100 independent investment advisors with $235 billion in total
assets under management participated in this study in late July. Clients of
these advisors are typically millionaires.
More than one-third (39%) of these advisors' clients consider
themselves to be retired; however, many of these individuals haven't
completely exited the rat race -- nearly six in 10 (59%) retired clients
are pursuing a new career interest. And these affluent retirees aren't
necessarily considering a second career just for fun or to pursue a passion
-- according to the study, the need for additional income is a strong
consideration. Advisors say that more than half (51%) of clients who are
already retired continue to work to maintain their lifestyle; 48 percent
say their clients work to fund leisure pursuits, while 39 percent of
advisors say clients do so to cover unanticipated expenses.
"Almost no one is immune to retirement unrest, but our study shows that
over the past six months, on average only 12 percent of advisors' clients
needed reassurance that they were on track to meeting their financial
goals," said Charles Goldman, executive vice president of Schwab
Institutional. "Clearly, the personal approach and long-term view that
independent advisors take instills a measure of confidence and trust with
their clients so that they can sleep well at night."
Wealthy individuals place high price on passing on legacy of financial
responsibility
The study also reveals that investors are deeply concerned about
ensuring that their heirs and future generations understand the
responsibilities of wealth. More than 69 percent of advisors say that
clients express a strong interest in educating their children/grandchildren
about investing; 67 percent say they are interested in charitable giving
and 71 percent of retired clients are now volunteering. More than 60
percent of advisors cite long-term care expenses, estate taxes, education
costs for children/grandchildren, and the costs of care for aging parents
as top client concerns.
Noted Goldman, "The affluent are working with independent advisors not
only to help them achieve personal monetary milestones, but also to ensure
that their financial resources can be a means for addressing their more
important concerns -- family, community, health, education and social
responsibility."
About Schwab Institutional
Schwab Institutional is a leading provider of custodial, operational
and trading support for independent investment advisors. Since 1987, Schwab
Institutional has supported independent investment advisors by offering
support and services to help grow their businesses and help their clients
reach their financial goals. As of June 30, 2007, client assets custodied
with Schwab Institutional stood at $556 billion. These assets, managed by
the approximately 5,000 independent advisor firms Schwab Institutional
currently serves, represent approximately one-third of total client assets
custodied with The Charles Schwab Corporation. Brokerage products offered
by Schwab Institutional are not FDIC insured, are not guaranteed deposits,
and are subject to investment risk, including the possible loss of
principle invested. Schwab Institutional is a division of Charles Schwab &
Co., Inc.
The Independent Advisor Outlook Study, conducted for Schwab
Institutional by Koski Research in July 2007, has a 3.09% margin of error.
About Charles Schwab
The Charles Schwab Corporation (Nasdaq: SCHW) is a leading provider of
financial services, with more than 300 offices and 6.9 million client
brokerage accounts, 1,169,000 corporate retirement plan participants,
187,000 banking accounts, and $1.4 trillion in client assets. Through its
operating subsidiaries, the company provides a full range of securities
brokerage, banking, money management and financial advisory services to
individual investors and independent investment advisors. Its broker-dealer
subsidiary, Charles Schwab & Co., Inc. (member SIPC, http://www.sipc.org),
and affiliates offer a complete range of investment services and products
including an extensive selection of mutual funds; financial planning and
investment advice; retirement plan and equity compensation plan services;
referrals to independent fee-based investment advisors; and custodial,
operational and trading support for independent, fee-based investment
advisors through its Schwab Institutional division. The Charles Schwab
Bank, N.A. (member FDIC) provides banking and mortgage services and
products. CyberTrader(R), Inc. (member SIPC, http://www.sipc.org) is an
electronic trading technology and brokerage firm providing services to
highly active, online traders. More information is available at
http://www.schwab.com. (0807-1196)
SOURCE Charles Schwab
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Related links:
http://www.schwab.com
CONTACT:
Alison Wertheim of Charles Schwab,
+1-415-636-5812, alison.wertheim@schwab.com
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