Suey, who has been in the financial industry for more than 10 years, says most of her clients have at least $250,000 in investable assets, and 60 percent to 70 percent are saving enough to meet their retirement goals. The firm serves mostly business owners, entrepreneurs and independent women.
“We have a few clients whose parents grew up in the depression and they still have the mindset that they have to save everything. They have not transitioned to the point where they can spend a little,” Suey says. But that does not apply to most clients.
For those who are spending too much, she tries to paint a vivid picture showing them they may run out of money during their retirement.
Like the largest group of advisors (40 percent), most of Carol Alexander’s clients are saving between 10 percent and 15 percent of their income for retirement. Between 80 percent and 90 percent of her clients are saving enough to meet their retirement goals.
The next largest group of advisors, 34.5 percent, has clients who are saving between 5 percent and 10 percent. Smaller groups have clients saving between 15 percent and 20 percent (16.5 percent of advisors), less than 5 percent (6.3 percent of advisors) and more than 25 percent (2.6 percent of advisors).
Alexander, a planner with Retirement Investment Advisors Inc. in Oklahoma City, says she uses Personal Financial Ratios to help clients determine their saving needs. The software allows clients to compare where they are in saving money and retiring debt compared to where they need to be for their age to reach their goals.
“We use a holistic approach to make sure people are saving enough,” says Alexander. “One of the problems is young people do not save enough because they do not realize how quickly retirement comes.”
Another financial planner, Cynthia D. Allen, is among the lucky advisors who have most of her clients saving 25 percent or more for retirement and 70 percent to 80 percent are on track to meet their retirement goals. The recent market upheavals have generated a renewed interest in saving, she says.
“There is a greater caution on the part of our clients and a desire to know they can fund their lifestyles when they retire,” says Allen, who is a vice president with RBC Wealth Management in Hunt Valley, Md. Most RBC clients have at least $500,000 in investable assets, although Allen says she will not turn down anyone seriously interested in receiving advice.
Gale K. Zumpano is another advisor who says she has a good client base since she is associated with the Alabama Credit Union. She has been in the financial business for 32 years and now has many clients who are part of the faculty at the University of Alabama, as well as others who are not employed by the university and have 401(k) plans.