Financial Planning,  Planning Profession

The Need For Financial Planning: Coronavirus Advice

“The Need for Financial Planning” covers financial planning topics and ties in data suggesting the opportunity for new and prospective advisors to improve America’s financial health.

A tweet from Michael Kitces over the weekend about Northwestern Mutual’s latest survey caught my eye:

20% is a pretty significant chunk of these consumers looking for an advisor for the first time(!).

The XY Planning Network‘s advisors seem poised to best service this new influx of prospective clients. They have built their fee-only compensation model (monthly retainer vs. AUM-only) to specifically serve these generations.

And while experiencing huge growth since its launch in 2014 (30 members its first year), XYPN’s total advisor count still stands at “only” 1,000+. This implies a significant number of Gen X, Y, and Z households “available” to XYPN advisors due to the coronavirus.

A few more statistics from the survey on how these generations are coping with the fallout from the virus:

• 25% have dipped into personal savings or emergency funds (excluding retirement accounts)
• 14% have borrowed money from family or friends
• 10% have dipped into retirement accounts/savings
• 8% have applied for a loan from a financial lender
• 8% have sold investments to raise cash
• 6% have used the cash value of a life insurance policy

The need for advisors willing to serve this market with real planning needs could not be overstated.

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