The Great Divide: Are Advisers Sharing Their Political Views with Clients?

As a contentious presidential election draws near, advisers are taking different approaches to addressing the elephant – or donkey – in the room.

New data from InvestmentNews Research and Transamerica show that while most advisers are discussing the election with clients, they are split on whether to share their personal views. Advisers are also split on whether they believe sharing those views will hurt their business.

The findings are part of an ongoing research series exploring adviser business practices and attitudes in an ever-changing world shaped by politics and the pandemic. The latest survey delved into how advisers are discussing the election with clients.

As the chart below shows, only 9% of advisers are outright avoiding election-related conversations. Instead, nearly a third of advisers say they discuss it with “most” clients, and 60% discuss it with “some” clients.

Differences lie in whether the adviser brings their own political views into the conversation. Just a shade under half (49%) of surveyed advisers say that they are sharing their personal views.

For advisers who keep their views private, the reason is straightforward: They fear turning off a substantial portion of clients on either side of the political aisle. The chart below shows the views of surveyed advisers who don’t share their personal political views with clients.

However, advisers who have opened up and shared their election viewpoints say it has helped them connect with clients. Most (64%) of these advisers say they share their views to connect with both existing and new clients. Interestingly, no surveyed advisers indicated they were sharing their views to connect only with new clients. This suggests advisers are not using the election or politics as a potential recruiting tool to attract like-minded prospects.

Client Concerns Driving Election Conversations

When advisers wade into an election discussion with clients, it is likely because a client prompted it. As the chart below shows, 80% of surveyed advisers say their typical client is at least “somewhat” concerned about how the election will negatively impact their financial position.

In response, most advisers are taking action and proactively reviewing or making some type of change to the client’s financial plan. Only 32% of advisers say they are making no changes in response to the election. Reviewing the estate plan is the most common election-related action item.

With many advisers planning reviews or changes in response to the election, it means political conversations with clients will likely continue past November.

Transamerica Resources, Inc. is an Aegon company and is affiliated with various companies which include, but are not limited to, insurance companies and broker dealers. Transamerica Resources, Inc. does not offer insurance products or securities. The information provided is for educational purposes only and should not be construed as insurance, securities, ERISA, tax, investment, legal, medical or financial advice or guidance. Please consult your personal independent professionals for answers to your specific questions.

The post The Great Divide: Are Advisers Sharing Their Political Views with Clients? appeared first on InvestmentNews.

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