Factors associated with getting and dropping financial advisors among older adults: Evidence from longitudinal data

Benjamin F. Cummings, Russell N. James

Research output: Contribution to journalArticle

4 Scopus citations

Abstract

Using the Asset and Health Dynamics among the Oldest Old (AHEAD), this study presents the frst longitudinal results analyzing factors associated with getting and dropping a fnancial advisor. We fnd that quantitative as well as qualitative factors are signifcant when evaluating the value of professional fnancial advice. Getting a fnancial advisor was positively associated with becoming a widow(er), asking family members for assistance with fnancial decisions, seeking professional help for emotional problems, and experiencing increases in income and net worth. Among single and widowed respondents, experiencing signifcant cognitive decline also increases the likelihood of getting a fnancial advisor. Dropping a fnancial advisor was negatively associated with becoming a new widow(er), getting married, and experiencing an increase in net worth. No longer involving family members in fnancial decisions was strongly related to dropping a fnancial advisor. We discuss implications for practitioners relevant to both client acquisition and client retention.

Original languageEnglish
Pages (from-to)129-147
Number of pages19
JournalJournal of Financial Counseling and Planning
Volume25
Issue number2
StatePublished - 2014

Keywords

  • Financial advice
  • Financial advisor
  • Help seeking
  • Life events
  • Widowhood

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