Higher board value through inflation

The SSGA survey, which looked at the impact of inflation on the behaviors of US clients, looked in particular at the value provided by advisors in a period of heightened volatility and uncertainty.

The results show that inflation-induced stress and anxiety influence investors’ behavior when it comes to short-term budgeting and committing to long-term financial goals.

Differences between generations

Customer reactions to inflation vary by age, the study also reveals. Thus, more than 40% of Gen Xers surveyed say they do not want to do business with an advisor to manage their finances.

This generation’s confidence in financial institutions has been eroded by several financial market crises. This is concerning, as this is the age group that will most benefit from the benefits of the upcoming wealth transfer, says Advisorpedia.

Advisors shouldn’t give up on developing relationships with this clientele, however, says Allison Bonds, head of private wealth management at SSGA. “They have the opportunity to cultivate trusting and collaborative relationships with Gen X clients, who want to stay involved in making their own investment decisions to a greater extent than other generations,” he said. she.

A window of opportunity

Millennials are more optimistic. The majority (63%) say they are confident of achieving their financial goals despite record inflation. Additionally, nearly two-thirds of millennials are inclined to work with professionals to achieve their financial goals.

More generally, a third of investors surveyed by the SSGA think now is a good time to invest. This figure rises to 47% among millennials.

According Advisorpediathese results could suggest that there is a window of opportunity for counselors who are open to adapting their approach according to the various generations and their concerns.

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