According to Lottridge, most clients currently seeking professional financial advice have already realized that they’re alienated from their finances and realize that they need to engage. Technology may delay that epiphany for younger generations.
“I think millennials could potentially have more problems with inertia,” says Lottridge. “That’s one of the fascinating things about technology-driven advice: You have to wonder how much accountability is out there.”
Some non-discretionary clients will never actually follow through on an advisor’s recommendations, says Lottridge. Catalyst has recognized a trend of affluent investors seeking out financial advice for validation.
While most advisors want to help their clients no matter what, holding on to clients who refuse to take advice harms all parties. At a certain point, Lottridge believes, advisors should let stubborn clients move on.
Magson, on the other hand, says that advisors have a responsibility to keep trying to help non-compliant clients.
“In health care, it is incumbent on the patient to act,” Magson says. “The doctor says stop smoking, it’s the patient’s decision to make. But if they don’t stop smoking, the doctor doesn’t stop treating them. If they can’t take the advice, then the doctor tries something else: the patch, gum, cutting down slowly. Advice is heading in the same direction.”