Financial Advisors Pursue More Frequent, Personalized Engagement with Clients as a Result of Current Economic Conditions, Edward Jones Study Finds

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May 02, 2023, 11:16 ET

Millennials Most Vulnerable to Hardship, Say Financial Advisors

ST. LOUIS, May 2, 2023 /PRNewswire/ -- Financial-services firm Edward Jones today announced survey findings revealing three-quarters of financial advisors (76%) from across the industry have increased their engagement with clients due to current economic conditions in the country (i.e., inflation, market volatility, recent bank foreclosures/mergers).

Most financial advisors are communicating with clients monthly (44%) or even weekly (42%) followed by several times a month (10%) and quarterly (4%). Further, in-person meetings are back as the most common way financial advisors communicate with clients (38% vs. 24% for email, 23% for phone calls and 16% for virtual meetings).

"Edward Jones financial advisors are focused on serving their clients through deep personal relationships and comprehensive planning and advice," said Don Aven, principal, Branch and Region Development. "We know that clients are more vulnerable to emotional decision-making during economic uncertainty, making trusted relationships and personalized advice needed more than ever."

Clients Who Work with Financial Advisors Have Greater Financial Resilience

Almost nine-in-10 financial advisors (88%) believe that most of their clients feel financially resilient, meaning they can withstand or recover quickly from difficult financial conditions. In fact, one third (32%) report that all their clients feel financially resilient. Additional research from Edward Jones indicates that those who work with a financial advisor are more than twice as likely to feel very confident about their financial wellness than those who don't work with a financial advisor (40% versus 18%, respectively).

To prepare for navigating financial hardship, the respondents' clients most relied on life insurance (64%), cash/emergency savings (58%) and retirement savings (43%). Consequently, 69% of financial advisors are confident that their clients' emergency savings fund will last three months or more.

"This research confirms what we see working with clients every day – a financial advisor can not only help investors prepare for inevitable ups and downs, but also build their financial knowledge and confidence," added Jesse Abercrombie, an Edward Jones financial advisor in Plano, Tx.

Financial Advisors Report Millennials are Most Vulnerable to Financial Hardship

Across generations, financial advisors identified millennials (43%) as the generation that is most vulnerable to financial hardship followed by Gen Z (36%), Gen X (17%) and baby boomers (4%). Additionally, financial advisors reported individuals with a household income (HHI) of $101K-$200K to be twice as vulnerable to financial hardship than those with HHI of under $50K (20%) and those with HHI of $51-100K (20%).

"Whether it's insufficient emergency savings or an incomplete plan to pay down debt, we're trained to identify areas of vulnerability for clients, so we can develop tailored strategies to help them improve their overall financial wellness," said Abercrombie. "The firm offers free Financial Fitness resources on topics including budgeting, improving credit score and purchasing a home, among other topics at edwardjones.com/financialfitness."

Methodology

This survey was conducted by global data intelligence company Morning Consult among a national sample of 200 financial advisors from March 24 – 31, 2023.

About Edward Jones

Edward Jones is a leading financial services firm in the U.S. and through its affiliate in Canada. The firm's nearly 19,000 financial advisors serve more than 8 million clients with a total of $1.6 trillion in client assets under care at the end of 2022. Edward Jones' purpose is to partner for positive impact to improve the lives of its clients and colleagues, and together, better our communities and society. Through the dedication of the firm's approximately 52,000 associates and our branch presence in 68% of U.S. counties, the firm is committed to helping more people achieve financially what is most important to them. The Edward Jones website is at www.edwardjones.com, and its recruiting website is www.careers.edwardjones.com. Member SIPC.

SOURCE Edward Jones