Utilization of Financial Advisors by Affluent Retirees

摘要: Abstract Approximately 78 Million baby boomers will reach traditional retirement age during the next 20 years. As wave of retire a shift in focus from asset accumulation to decumulation occur relating new challenges. Financial advisors continue be an integral part phase as they are planning. The authors investigate factors relevant affluent retirees' utilization financial and differences planning activities undertaken by those utilizing advisor using proprietary dataset. find variables gender, education, marital status, wealth, debt all associated with use advisors. Utilization was also increased level activities, awareness, confidence. © 2010 Academy Services. All rights reserved. JEL classification: D14; D12; D31; J26; 122 Keywords: Retirement; Retirement income; advice; 1. Introduction America is at cusp large retirees ~78 million near retirement. Currently, eldest about 63 years old, which means over more than Americans turning 65 old (Paul, 2001). Much previous research has directly related preparation preparedness. Because looming such generation, possessing amount wealth both manage protect, on income management emerge. There compelling reasons driving this change focus. Historically, were provided benefits that paid out annuity for their life through defined benefit plans. Today, number private plans drastically decreased being replaced cheaper participant investment directed contribution 401(k)s (Basse« Rodrigues, 1998). In terms dollars invested, second quarter 2009, $3.65 trillion invested (and 3.74 IRAs) compared only $1.97 1985, $813 billion $509 $241 IRAs). growth between 1985 assets have seen roughly seven-fold increase where two half -fold (ICI, 2009). Second, expectancy (Cervellati Sunde, 2005). Rather receiving payments life, likely face challenge having investments control distributions ensure last longer. Third, current future rising cost healthcare (Glied, 2003). These costs combined increasing require longer lifetime. Finally, it evident Social Security system difficulties under administration's mode operation. Burdick Manchester (2004) project operate deficit 2016 full exhaustion trust fund 2037, leading uncertainty stability stream. Future issues not past, therefore need exists research, educate, create solutions hedge risks these problems impose. Some may take initiative own destiny managing finances. Others enlist help professional them way maze solutions. Previous focused primarily when retirement, rather once …