How can financial advisors target the 50 percent of Americans that are not investing currently?

I've read in Marketwatch, Reuters, and Bloomberg that only 50 percent of Americans are investing. I know that some financial advisors want clients with over $100,000 to invest. However, I am wondering why more advisors are not targeting this half of Americans, or why this half of Americans doesn't seek out financial advice or investment advice from financial professionals. They may not have as much to invest, or anything, but isn't it the job of an advisor to try to increase the number of people who are investing? What are strategies that advisors can use to target this population?

Debt, Investing, Choosing an Advisor
Answers
Sort By:
Most Helpful
March 2018

Danford, Dan

Saint Joseph - Kansas City, MO

Much about investing is situational. Calls to my office are usually prompted by some financial event. Perhaps a divorce, death, retirement, or change of job. That is not always the case, but something often spurs the investment interest.

I’ve noticed over many years of helping people that finance isn’t a priority for most people most of the time. In fact, most people are busily managing their family, jobs, recreation, and time … if they have money to fund those activities, investing probably isn’t on their radar. Until some financial event happens.

Truthfully, there’s not much value in approaching those people before the right moment because their attention is necessarily elsewhere. I compare it to certain kinds of advertising; snow tires don’t attract much interest in July, but those days surrounding the season’s first snow are magic for retailers.

One last point. A small segment of people love finance and investing. Those people tune to CNBC, and read every book and article they can find. Finance and investing is a hobby to them and their interest never wanes. A lot of advisors have this level of interest, too. My observation is this: it’s really hard to stimulate that level of interest in others. You may wish that family and friends cared that much, but most of them aren’t going to care until they encounter a financial event.

March 2018
March 2018
March 2018
March 2018