Business owners make up almost a third of
high-net-worth individuals in the U.S., yet are among the underserved
segments of the financial planning market, according to a new survey.
The survey by Phoenix Companies Inc. found that
almost a third of high-net-worth business owners-those with a net worth
of $1 million or more, not including primary residences-do not have a
primary financial advisor. Of those who do have an advisor, according
to a survey, about 18% are not satisfied.
The survey also found that 68% of these business
owners have never had their business professionally valued and that 24%
say they are not knowledgeable about financial matters in general.
The wealth survey found that 30% of the nation's high-net-worth
population is comprised of business owners.
"We also know that up to 70% of family
business don't survive to the next generation due to lack of planning,"
says Robert Primmer, senior vice president of Phoenix's Life
Distribution and Sales division. "Business owners need to protect the
assets they've worked so hard to create, and this translates into an
enormous opportunity for advisors."
The survey found, for example, that 69% of wealthy business owners do
not have life insurance for business-related purposes, 63% do not have
a succession plan, and 50% do not have a business transfer or
continuation plan.
The annual Phoenix Wealth Survey consisted of 1,514 interviews conducted online in January.
Business Owners Lack Planning Help
May 2, 2005
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