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Why Don’t More People Seek Professional Financial Planning?

Over three-quarters of the nation are dissatisfied with their personal financial standing, yet roughly a quarter of those individuals actually seek counsel.

For financial planners, the opportunity lies within understanding the discrepancy between need and action, in order to enhance their prospecting methods and gain higher conversion rates.

The bottom line is, the need for financial planning is there, it’s simply a matter of focusing your efforts to respond to it appropriately. Here are two major findings to inform how you can convert more prospect:

High Financial Illiteracy

When looking at gender specifically, women are more likely to score lower in financial literacy than men.

Younger individuals (18-44) are in the same boat and are more prone to making poor financial decisions, due to a lack of knowledge and understanding of how to manage their funds.

Financial illiteracy has a major upside for financial planners: once individuals realize the complexity and seriousness of large financial decisions, they’re more eager to work with an expert, in order to be sure they’re making the best decisions.

For the advisor, it’s important to remember, with great power comes great responsibility and abusing the “naivety” of the client is not only dishonest but also potentially detrimental to the future of your firm.

Low Self-Confidence

Particularly with individuals with low financial literacy, the chances they will seek professional counsel can be hit or miss.

The reason being, individuals believe they do not have the knowledge or capability to monitor the relationship with an advisor and evaluate their options, to make a responsible decision.

For the advisor, this is an opportunity to prove your genuineness and adapt to the client. Advisors should never assume a client knows what may seem “obvious” in the financial planning world.

Furthermore, using technical jargon or highfalutin phrasing will not instill the prospect’s confidence in themselves to start a relationship with you. Simply put: get on their level — as an expert, you should be able to explain even the most complicated concepts in simple terms.

Key Takeaways

  • Low-income clients are less likely to seek professional financial planning than high-income individuals.
  • Simplifying the financial advising process increases consumer likelihood of seeking expert advice, as they feel better equipped to begin a relationship.
  • Many consumers believe their financial literacy to be higher than it actually Advisors must be careful to toe the line between being helpful and patronizing.
  • Personal finance is a growing trend, starting in schools and universities, which offers great potential to the industry.

Listening to your client is the first step to delivering on their needs — Are You Really Listening to Your Clients?

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Why Don't More People Seek Professional Financial Planning?
Learn why more than 75% of individuals do not seek expert financial advising, despite exhibiting a need.

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