If you don’t want to see widows (or widowers) walk out the door, engage both parties equally from the get go, suggests one Ontario advisor.
All too often, says Sean Straughan of Niagara Wealth, financial advisors work predominantly with one player in the marriage – the one who manages the finances – failing to make the necessary connection on both sides.
“It’s about equally engaging both parties purposefully,” Straughan says, adding that children should be on an advisor’s radar as well.
“Let’s have the kids come in with the parents (to meetings) too," he says.
With about 70 per cent of widows changing financial advisors within a year of their husband’s death, according to statistics released by Fidelity Investments last month – client preservation after a death is a ripe challenge for advisors, even if they’ve been handling the couple’s investments for 20-odd years.
And it’s not surprising that this is the case, if you take into consideration findings from a study by UBS Wealth Management Americas, released Tuesday.
According to the study, women may be happy dealing with broader wealth management activities such as day-to-day expenses and charitable donations, but they are still turning to men to handle such areas as investment and insurance decisions.
Even Millennial and Gen X feel this way with less than one in five women making the investment decisions, the study indicates. That is, until retirement, when they become increasingly worried about their financial situation, it says. (continued)