Myth: Highly educated, affluent professionals such as physicians, lawyers, dentists and accountants, do not seek out the advice of financial professionals because they believe they are already knowledgeable about investments.

Reality: Only 26% of affluent professionals think of themselves as very knowledgeable about financial products and investments.

A recent study showed that a majority (51%) of professionals consider themselves fairly knowledgeable but with a great deal to learn. Because of this, professionals are more likely to seek out and use the services of a professional advisor. Forty-nine percent of professionals describe themselves as advisor-dependent or advisor-assisted, compared to 34% of other professional occupations. This is consistent with professional's view that they are experts in their field but not in financial services. Because they do consider themselves experts in their field, they expect a higher level of financial expertise from their Advisors.

Not surprisingly, slightly more than one-half (52%) of professionals feel that they don't take the time necessary to manage their finances. Other occupations are more likely than professionals to be actively involved in the day-to-day management of their investments. Professionals are used to their clients and patients seeking expert advice from them and have that same attitude that "experts know best" which leads them to seek the advice of financial Advisors often.

Advisor Action Steps:

To gain professional affluent clients:

• Establish a relationship with organizations in your area like medical and dental residency programs, bar associations, and high volume CPA firms.
• Consider volunteering or offering seminars at hospitals or clinics where young physicians will be working.
• Seek out opportunities to socialize with affluent professionals at fund raisers and other events. It's a good way to make contacts, while having fun.

Source: The Spectrem Group