Wealth advisor confidence survey findings for slide share-compressed

Rick Telberg | CPA Trendlines
Hank Berkowitz | HB Publishing & Marketing Co.
Valentino Sabuco | The Financial Awareness Foundation
CPA/Wealth Advisor
Confidence Survey™
2019
(c) 2019. HB Publishing & Marketing Company, LLC | CPA Trendlines
Inc. | The Financial Awareness Foundation
1

For a COMPLETE COPY
of this presentation contact:
hberkowitz@HBPubDev.com | (203) 852-9200
2

3
Advisors increasingly pessimistic
over the past 12 months
2019 2018
Expect at least one more market
correction within 12 mos.
88% 82%
Say recession is “somewhat” or
“very” likely within 12 months
47% 33%
%Chg
+6%
+14%

4
What’s keeping the affluent
up at night? Advisors say…
2019 2018 % Chg
Turbulence in DC 75% 64% +11%
Trump tariffs and retaliation 64% NA NA
Long overdue for stock
market correction
54% 46% +8%
Continued interest rate hikes 44% 32% +12%
Flat or inverted yield curve 31% 12% +19%
Long overdue for recession 25% 16% +9%

5
Advisors say the affluent are
less concerned about…
2019 2018 % Chg
Doubts about Trump tax plan 19% 45% -26%
Republican healthcare plan 10% 20% -10%
Budget deficit 10% 16% -6%

6
Advisors say Millennials increasingly
pessimistic about their financial futures?
2019 2018 % Chg
Millennials (age 18-35) 39% 28% +11%
Boomers (age 53-70) 29% 34% -5%
Gen X (age 36-52) 23% 28% -5%
Great Generation (age 71+) 9% 10% -1%
100% 100%

30% 40% 50% 60%
Domestic politics
Work-life balance struggle
Global instability
Insuffient family leave
Want more leisure time
My own financial instability
Can't afford more children
Worried about economy
Lack time for existing children
Childcare too expensive
36%
37%
37%
39%
42%
43%
44%
49%
54%
64%
Source: NY Times, Morning Consult
Why young parents nervous about
having more children
7 of Top 10
reasons
financial/
political
7

Most pessimistic cohort by
advisor age
Advisors in
30s say
40s
say
50s
say
60s/70s
say
Millennials
(51%)
Gen X
(49%)
Millennials
(38%)
Gen X
(35%)
Boomers
(27%)
Millennials
(41%)
Boomers
(32%)
Gen X (25%)
Gen Z (2%)
Millennials
(37%)
Boomers
(28%)
Gen X
(23%)
8

5.00%
0%
2%
0%
29.00%
57%
33%
47%
14%
44%
32%
18%
29%
29%
34%
CFP/Wealth Adv
Attorneys
CPAs
Insurance/Planned Giving
Fallen Behind Same Improved Somewhat Improved Significanly
9
To what extent has America’s financial
literacy improved over the past 2 years?

10
CPAs most skeptical that America’s
financial literacy has improved
CPAs CFP/Wealth
Advisors
Insurance/
Planned
Giving, Atty
Stayed the same or
fallen behind
L2 years
73% 67% 51%

11
Young advisors most optimistic about financial
literacy improvement and college’s role
Advisors in
30s
40s 50s 60s 70s
U.S. financial
literacy
improved L2
yrs
42% 30% 27% 29% 35%
Who needs to
step up?
K-12 (58%)
Colleges (25%)
CPAs (8%)
K-12 (67%)
Colleges (10%)
CPAs (10%)
K-12 (63%)
Colleges (17%)
Employers (8%)
K-12 (46%)
Colleges
(13%)
CPAs (12%)
K-12 (41%)
Colleges
(21%)
CPAs (12%)

12
“Half or more clients faced these
issues when first came to see me”
CFP/Wealth
advisors
who agree
Attorneys who
agree
CPAs who agree
In danger of outliving
their money
47% 86% 67%
Didn’t know their
monthly spending
53% 29% 52%
Didn’t know their
retirement number
92% 86% 85%
Had no estate or
gift plan
82% 57% 82%

13
Why are so many Americans hesitant to
obtain estate and gift plans?

14
To what extent would tuition keep rising
if home equity could not be tapped?

15
CPAs most skeptical about home
equity’s role in runaway tuition
CPAs CFP/Wealth
Advisors
Insurance/
Planned
Giving, Atty
Expect tuition would
decline if HELOC
disallowed
39% 41% 50%

16
Slightly fewer advisors expect their
firms to grow in 2019 vs. 2018
2019 2018 %Chg
We expect to grow
over the next 12 mos.
77% 82% -5%

17
Growth expectations tempered for 2019
2019 2018 %Chg
Grow 10% or more 28% 49% -21%
Grow 1% to 9% 49% 34% +15%
Flat or declining
growth
23% 18% +5%

18
Wealth advisors most optimistic
(attorneys the least)
CPAs CFP/Wealth
Advisors
Attorneys Insurance/
Planned
Giving
Grow 10% or more 21% 47% 0% 15%
Grow 1% to 9% 51% 50% 57% 62%
Flat or declining
growth
28% 3% 43% 23%

30% 40% 50% 60% 70%
Very Likely (CPAs)
Very Likely (all resp.)
68%
37%
19
CPAs twice as likely to expect
10% market correction near-term

25% 30% 35% 40% 45%
Somewhat/Very Likely
(CPAs)
Somewhat/Very Likely (all
resp.)
41%
34%
20
CPAs more likely to expect recession
within 12 months

CPAs/
Tax Advisors
CFPs/
Wealth Advisors/
Finl Advisors
Insurance/
Planned Giving/
Other
1. DC Turbulence
2. Trump Tariffs
3. Market
Correction
1. Market Correction
2. DC Turbulence
3. Trump Tariffs
1. Trump Tariffs
2. DC Turbulence
3. Interest Rates
21
Top concerns by advisor type

Snapshot of worry by advisor type
CPAs/
Tax Advisors
CFPs/CFAs
Wealth Advisors
Insurance/
Planned Giving/
Other
Market Correction
Somewhat/Very
Likely
86% 90% 96%
Recession
Somewhat/Very
Likely
51% 36% 84%
Flat or Declining
Revenue Expected
28% 3% 30%
Most Pessimistic
Clients
Millennials (39%)
Boomers (33%)
Millennials (36%)
Boomers (33%)
Millennials (52%)
Gen Y (20%)
Pessimistic Gender Women > Men
(18% vs. 13%)
Men > Women
(28% vs. 23%)
Women > Men
(16% vs. 12%)
22

Top client concerns by
advisor age
Advisors in
30s
say
40s
say
50s
say
60s
say
70s
say
Trump Tariffs
DC Turbulence
Market
Correction
DC Turbulence
Trump Tariffs
Market
Correction
DC Turbulence
Trump Tariffs
Market
Correction
DC Turbulence
Trump Tariffs
Market
Correction
DC Turbulence
Trump Tariffs
Interest Rates
23

What’s Keeping Advisors Up at Night?
Advisors in
30s
say
40s
say
50s
say
60s
say
70s
say
Market
Correction
Likely
74% 90% 88% 84% 91%
Recession
Likely
67% 57% 51% 52% 46%
Single Digit
Rev. Growth
49% 37% 52% 79% 45%
Rev. Flat or
Negative
17% 20% 16% 12% 46%
24

Top Thought Leadership Tactics*
0%
10%
20%
30%
40%
50%
60%
60%
47% 45% 42% 39% 38%
27%
21% 19%
12%
7% 4%
* Consider Very/
Extremely Effective
25

Top Thought Leadership tactics:
by firm growth expectation
Tactic
(Very or extremely
valuable)
Expect
Double Digit
Growth
Expect
Single Digit
Growth
Expect
Flat or Negative
Growth
Public speaking 66% 60% 54%
Publish articles 51% 48% 44%
Quoted in press 47% 48% 40%
Book/eBook 46% 39% 33%
Webinars 42% 38% 33%
Client Events 41% 35% 35%
Video 34% 29% 17%
Blogging/
LinkedIn Publish
24% 20% 13%
26

CPAs less likely to use high impact
thought leadership
Tactic
(Very, extremely valuable)
CPAs All
Respondents Var.
Public speaking 48% 60% -12%
Publish articles 40% 47% -7%
Quoted in press 42% 45% -3%
Webinars 37% 38% -1%
Client events 35% 42% -7%
Writing book/Ebook 27% 39% -12%
Producing Videos 19% 27% -8%
Blogging/
LinkedIn Publish
19% 21% -2%
27

CPAs just as likely to use low impact
Thought Leadership
28
CPAs All
Respondents
Var.
Facebook 11% 12% -1%
Twitter 7% 7% 0%
Instagram,
Snapchat
4% 4% 0%

“Blogging is one of the best ways to get your
name out there and generate referrals.”
“One of the best things I ever did was hire
an editor to do our blog. I don’t even have
to write--he just uses audio files from my
smart phone.”
Jody Padar, CPA | Founder New Vision CPA Group
Author of “The Radical CPA”
500,000 followers
29

Conclusions
• Recession fears have doubled for advisors L-12 mos.
• Trump Tariffs, DC Turbulence, Market Correction fears
keeping advisors up at night.
• CPAs, attorneys more pessimistic than other advisors.
• High growth advisors more likely than others to value
public speaking, media coverage and being published.
• Most advisors don’t think America’s financial literacy is
improving—K-12 biggest root cause.
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Conclusions, (cont’d)
• Low-growth firms more likely to rely on social media.
• Most advisors think Millennials and their own peers
are most pessimistic about their financial futures.
• Over two in five advisors (41%) think college tuition
would decline if tapping home equity disallowed—
CPAs least likely to agree.
• CPAs least likely to think U.S. financial literacy has
improved.
31

High-growth advisors place greatest
value on…
• Public speaking
• Articles for publication
• Writing books, eBooks
• Press mentions
• Blogging and videos
32

“Failure is not fatal….
But, failure to change
just might be.”
-- John Wooden
10-time national champion
college basketball coach
33
“If the rate of change outside your
organization is faster than the rate
of change inside your organization,
then soon you will die.”
--Jack Welch
Management icon
Former CEO, General Electric

Hank Berkowitz, MBA, MA
Accounting & Finance Show-NYC
July 12, 2019
For a COMPLETE COPY
of this presentation:
hberkowitz@HBPubDev.com | (203) 852-9200
34

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