According to a recent article posted on the Financial Advisor Magazine website by Christopher Robbins (not to be confused with Christopher Robin), 82% of respondents in a survey of American households sponsored by the Million Dollar Round Table said that they are “somewhat” nervous that they will be impacted by a recession in the next year. 23% of the respondents said they were “extremely” or “very” nervous.
Robbins concludes that Advisors workloads are likely to increase if the US economy does go into recession as many respondents say their reliance on financial advise would increase during a downturn. Depending on your compensation structure, this could be good or bad I suppose.
There is some universal good news for advisors. It is especially good for those that could use more business. Robbins writes,
Of respondents without access to financial advice, 62% said a significant change in income, assets or wealth would cause them to seek out an advisor for assistance.
Reading this reminds me of the used car sales ads I would read on Craigslist years ago: MY LOSS IS YOUR GAIN! Isn’t someone’s loss always someone else’s gain?
The majority of new client opportunities according to the survey appear to be from referrals. If your current client workload increases, there may be light at the end of the tunnel in the form of new business.
To read the full article, click here.