Sixty-seven percent of advisors plan to increase the number of clients they advise regarding retirement plans, according to a Financial Advisor survey.
The survey asked advisors how much of their practices are devoted to providing advice for retirement plans and health care. While over two-thirds plan to increase their retirement plan clients, less than a third (30 percent) plan to increase the number of clients they advise on health care.
Of the nearly 1,700 readers that completed the online survey, 24 percent responded that their practices provide advice to a quarter or more of clients whose businesses sponsor retirement plans.
Julie Moriarty a financial advisor and certified 403(b) benefits specialist with AXA Advisors in St. Charles, Mo., said that 75 percent or more of her practice is devoted to providing advice for businesses that sponsor retirement plans.
Moriarty works with educators; her firm has an entire group dedicated to the kindergarten-through-12th grade market, and it assists with enrollment in their employers' 403(b) plan as well as Roth IRAs.
Over two-thirds (69.1 percent) of respondents said they feel retirement plans can offer significant profit potential for their firms and 67.1 percent said they plan to increase the number of clients they advise on retirement plans.
“I plan to grow my business through referral and staying in front of my clients on a daily basis,” said Moriarty.
The survey found that 54.8 percent of advisor practices provide retirement plan advice to less than 25 percent of their clients and 21.4 percent have no clients they advise regarding retirement plans.
Just 15.5 percent of advisor practices are devoted to advising 25 percent or more of their clients on health care benefits. Twenty percent of respondents think that health care offers a significant profit potential for their firm and 30 percent plan to increase the number of clients they advise regarding health care benefits.
Mitch Arnold, president of Financial Services of Central Florida said regarding health care “I think there is potential but it is not significant in relationship to my gross revenues.”