For the current survey, the most common conversation topics were as follows: Advisors said clients were focused on market volatility (43%), portfolio performance (39%) and running out of money in retirement (30%). Advisors seemed to stick to their long-running script of talking about portfolio rebalancing (39%) and portfolio performance (36%). A relatively new and popular topic – concerns about rising interest rates – came in third (31%).
Since our focus today is tax-aware investing, we’d be remiss if we didn’t point out the low ranking that the tax implications of investing received as a common conversation topic. This seems especially noteworthy when we consider the survey took place a few weeks after the April 15th tax filing deadline.
It seems odd that only 22% of advisors said taxes were one of the most common conversation topics this year versus 29% in 2014. Interestingly, advisors said 14% of investors wanted to discuss taxes in 2015. That’s up 4 points from 10% last year.
Given the number of advisors (74%) who claim to be active in the taxable space, we think these conversations should rank higher. By taking a proactive stance on taxes and talking about solutions, advisors can reinforce their own value. Ultimately, the goal is to increase their clients’ after-tax wealth.
What advisors and investors are talking about
When thinking about conversations you've had with your clients over the past three months, which of the following have been the most common topics of conversations initiated by you? Initiated by your clients? (up to three responses)
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