Respondents said the top three types of bonds their clients own are high quality corporates (35%), municipal (32%), and treasuries (10%).
Although the industry gives lip service to the need for advisors to establish contacts with multiple generations within a family in order to build their businesses, only 25% of advisors said they had multi-generational relationships with 50% or more of their clients. Most have generational relationships with 25% or fewer of their clients.
“The multi-generational challenge has not gone away, but advisors are starting to bridge that divide,” Mee said. ”Advisors are starting to ask clients whether there are other family members who should be on calls. They also are encouraging other family members, such as adult children, to ask questions during these calls. The number one question they are getting is how to manage 401(k)s.”
Despite the challenges, it is still a good time to be an advisor and many are experiencing growth in their businesses. The top way advisors are gaining clients is being on the receiving end of referrals that they did not have to ask for, the survey said. The next four avenues for business growth, in order of importance, were asking for referrals from clients and strategic alliances; doing in-person networking; conducting Linked-In prospecting; and holding virtual educational seminars.
“The top two ways advisors generated new business were through referrals. That says everything about the need for advisors to build client trust and appreciation for the value they bring,” Mee said. “As advisors seek to grow their business in 2022, their focus should remain on increasing the value they add through exceptional service and the use of customized investment strategies that give clients peace of mind and confidence. If they do, they can expect the referrals to likely keep coming.
”The fact that referrals were the number one way of growing their businesses, at a time when they did not have a lot of in-person contact is incredibly interesting,” Mee said.