The New Reality for Financial Professionals

Allianz Life study finds large majority of Americans believe working with a financial professional would be beneficial, yet most do not do so. How can financial professionals close the gap?

Key findings:

• 88% say working with a financial professional would be helpful to ensure they can financially support all the things they want to do in life. But only 44% are currently working with a financial professional.
• 57% say they would prefer a financial professional who proposes solutions, but ultimately they make most of their own financial decisions.
• 33% would be more likely to work with a professional who is “understanding of my beliefs and values, and is open and knowledgeable about how these may impact my finances.”
• 30% would be more likely to work with a professional who is “empathic towards my financial struggles and meets me where I am at financially.”
• 34% would be more likely to work with a professional who “knows me as a person.”

Even as American consumers navigate a new retirement reality characterized by market volatility, inflation and recurrent financial crises, the majority of Americans are not employing the guidance of a financial professional to create their strategy, according to the Annual Retirement Study* from Allianz Life Insurance Company of North America (Allianz Life).

The study also found that Americans are looking for a financial professional who acts as a partner – not only offering professional advice, but also providing holistic guidance based on a personal understanding of their values and priorities.

The good news for financial professionals is that 88% of Americans say that working with a financial professional would help to ensure they can financially support all the things they want to do in life. There is also very high interest from those not working with a financial professional, but who are open to one, to talk to them about various financial worries, such as how to take distributions from retirement savings for their retirement income (78%), and not having enough money to do all the things they want to do in retirement (75%).

But only 44% of Americans are currently working with a financial professional. That’s trending down from 48% in 2022 and 49% in 2021. While the decline in financial professional use cuts across all generations, Millennials saw the steepest drop, falling 10 points in just one year (46% in 2022 to 36% in 2023).

Notably, more Millennials believe working with a financial professional would be helpful than other demographic groups. While 92% of millennials say working with a financial professional would help ensure that they can financially support all the things they want to do in life, 90% of Gen Xers and 81% of Boomers said the same.

What do you want to talk about?

Even among people working with a financial professional, some aren’t discussing certain important subjects, including longevity and health care costs. The reasons are various:

• 28% are using other resources to find solutions and 14% are worried the financial professional will just try to sell them something.
• 15% were not aware their financial professional could help them with it, 17% only talk to their financial professional about things the professional brings up, and 20% don’t meet regularly enough to talk about these things.
• 23% haven’t prioritized finding a solution, 16% feel they may be judged or are too embarrassed, and 10% say professional help is too expensive.

“Financial professionals need to listen to what consumers are saying in this data,” says Kelly LaVigne, Vice President of Consumer Insights, Allianz Life. “In the past, playing to your strengths in terms of product selection may have been a winning strategy, but financial professionals need to be clear that they are open to collaboration and solutions outside of what they usually offer. It’s about meeting clients where they are, mentally and emotionally, and finding out what keeps them up at night.”

Consumers want collaboration, but also want to retain control

Most Americans who are currently or interested in working with a financial professional say they would prefer to collaborate on their strategy and don’t want to give up control.

• 57% say they would prefer a financial professional to propose solutions, but they are ultimately making most or all of their financial decisions
• 25% say they are more likely to work with a professional who views their relationship as a partnership or consultation, where they drive the direction of the services provided

“Even though the subject of personal financial planning may feel overwhelming to many Americans, fewer are willing to completely turn it over to someone else than might have been the case in the past,” says LaVigne. “People are looking for a true partner, first and foremost.”

That also means people want a financial professional who can go beyond just crunching the numbers – they want someone whose advice is based on a deep understanding of them as people. Many Americans say they are more likely to work with a financial professional who is empathic and personal:

• Understanding of my beliefs/values, and is open and knowledgeable about how these may impact my finances (33%).
• Empathic towards my financial struggles and meets me where I am at financially (30%).
• Makes recommendations that reflect my actual life and desires, not some “financial ideal” (39%).
• Knows me as a person (i.e., what bothers me, my particular worries or values) (34%).

“Consumers’ desire for financial advice is as strong as it’s ever been, but financial professionals need to think more broadly about their role,” says LaVigne. “To successfully serve the next generation of clients, financial professionals need to focus on collaboration, flexibility and truly understanding their clients’ values, priorities and concerns.”

For more information on how financial professionals can respond to the new retirement reality, listen to “Rebuilding Retirement,” a new podcast series from Allianz Life.

Allianz Life conducted the 2023 Annual Retirement Study online survey in February and March 2023 with a nationally representative trial of 1,000 individuals age 25+ in the contiguous U.S. with an annual household income of $50k+ (single) / $75k+ (married/partnered) OR investable assets of $150k.

Allianz Life Insurance Company of North America does not provide financial planning services

About Allianz Life Insurance Company of North America

Allianz Life Insurance Company of North America, one of the Ethisphere World’s Most Ethical Companies®, has been keeping its promises since 1896 by helping Americans achieve their retirement income and protection goals with a variety of annuity and life insurance products. In 2022, Allianz Life provided additional value to its policyholders via distributions of more than $7.7 billion. As a leading provider of fixed index annuities, registered index-linked annuities and fixed index universal life insurance, Allianz Life is part of Allianz SE, a global leader in the financial services industry with approximately 150,000 employees in more than 70 countries. Allianz Life is a proud sponsor of Allianz Field® in St. Paul, Minnesota, home of Major League Soccer’s Minnesota United.

David Kanihan
david.kanihan@allianzlife.com
(763) 765-7031
@AllianzLife

View source version on businesswire.com: https://www.businesswire.com/news/home/20231207663284/en/

"Who does not love a horse race?"

That's what barrel racer Lisa Lockhart of Montana said in an exclusive interview with NBC when detailing all the reasons she loves being a professional rodeo cowgirl.

Barrel racing, a rodeo event introduced in 1948, was founded by a group of women from Texas who were trying to find a place in the wider sport of rodeo.

While the event's popularity has grown, and so have the paychecks, there are still numerous reasons the lifestyle is not sustainable for most.

Here, they delve into the truth behind barrel racing:

What is barrel racing?

Speed, speed and more speed.

The rodeo event is all about a horse and its rider attempting to win a cloverleaf pattern around placed barrels as fast as possible.

"It is a fan favorite for the crowd because it is a very simple concept of what it all entails," Lockhart said.

The skills, however, go way beyond pace as a horse's athletic ability and the ability of the rider are greatly tested in order to safely maneuver around the course. The horse must also be strong, smart and agile to "hug the barrels" as it cruises through the pattern with precision.

"I think what draws people is how pure and real [barrel racing] is. There is nothing fake about ranching," barrel racer Sherry Cervi said. "You have to take care of your animals."

While the event is mainly for women at the professional level, both sexes can compete at the youth and amateur levels.

Times are measured in one of two ways. Either by electric eye, a laser-like system that records times, or by a judge who uses a flag to indicate when to start and stop the clock.

The cowgirls credit the hit series "Yellowstone" as one of the ways the public has learned more about Western culture and ranch life.

"It has made being a cowboy cool!" Cervi said.

How much can barrel racers earn?

The more you win, the more you earn. It's as simple as that.

The payday goes beyond winning, however. There are numerous expenses riders have to take care of, including travel, lodging, meals, caring for the horse and more.

"To sum it up – if you’re one of the nation’s top barrel racers, you’ll be doing well to just break even," according to BarrelRacingTips.com.

The site also notes that the average regular season winnings between the top 15 was $97,210.

"It is a very, very expensive sport they live in. There are no guarantees. So they are not guaranteed a paycheck at any time, at any rodeo they participate in," Lockhart said. "So when an announcer says, 'Give 'em a round of applause because that's what they're going home with,' they're not wrong."

Despite the hefty expenses, Lockhart believes the money within the industry is growing.

"There really has been a turnabout the past few years," Lockhart said. "It is getting to where it is allowing contestants to actually have a decent income."

What is the lifestyle like?

Because barrel racing is part of most rodeos, there are weekends where there are numerous events in a weekend -- especially in the peak season (July, August and September).

The overlap of events causes riders and their horses to "plan [the schedule] by the hour," forcing teams to sometimes travel through the night to get to the next event.

Another layer of the lifestyle is keeping your horse, "your athlete," healthy and cared for, Cervi says.

The Arizona native also details how the day-to-day is "not glamorous at all."

"A lot of alone time, you miss your family, there are a lot of sacrifices that are made that people don't maybe see on TV," she said.

But what helps make the lifestyle more affordable are the sponsors, the pro admits. Especially when it comes to equipment expenses.

"To be able to do what I love … I think it's like any other career you choose. You put 110% into it and it will payoff at the end," Cervi said.

I’ve done virtual keynotes for many real estate conferences in the past year and one of the key trends I’ve noted has been the use of augmented reality (AR) and virtual reality (VR).

High-contact industries are among those that can benefit the most from VR and AR technology

 Prior to the pandemic, virtual property tours weren’t uncommon, but most individuals still preferred to see property in person. Today, that mindset has shifted, with countless buyers turning to virtual property tours first, before committing to see a home in person. Virtual tours have their roots in the computer gaming industry, providing the residential sector with the ability to use 3D and in some cases, VR headsets, to help bring spaces and surrounding areas to life.

While COVID has certainly been the most urgent and immediate factor influencing the rise in VR real estate tours, it’s not the only one. As Millennials and Gen Z become a larger percentage of home buyers, the demand for virtual and mobile real estate services is increasing. These generations have come to expect virtual options for nearly everything, and home buying is no exception.

The next evolution of virtual tours

One of the most advanced companies to bring virtual tours to the masses is Guided Virtual Tours, a rapidly-expanding Tampa-based startup.  

Guided Virtual Tours is different from other virtual tour platforms—unlike traditional virtual tours that require users to click through to different points, this solution guides the prospect through the tour, selling the property just like an agent would. There’s no clicking from point to point or dragging to see different perspectives.

Instead, the prospect sits back and looks around as the VR leasing agent takes them through the tour. 

In addition, this platform is also the first proactive touring solution in the industry. Because these virtual tours can be posted on a property manager’s YouTube or social profiles, it can automatically generate new leads while giving tours 24 hours a day. 

Founder Chris Vasilakis, an American Mensa member and Marine Corps combat vereran, has a deep background in VR, having implemented it in various scenarios—including hip-hop artist management.  

After founding multiple startups in different industries, he eventually went all in on virtual reality with Guided Virtual Tours. 

According to Vasilakis, tours on his platform can be created at an affordable price, which hasn’t always been the case. “This is the future of touring all properties, allowing thousands of prospects to tour each day while reducing the need for human leasing agents,” he says. “It’ll be global—and it’s going to change the industry.”

It’s safe to say that virtual reality has enormous benefits for the year to come as their real estate landscape recovers and adapts to what I believe will be a big business boom in the near future

A WAG has opened up on the reality of being married to a professional athlete, as she claimed it is actually quite ‘exhausting’. 

So for those that think being married to a footballer is just Selfridges shopping trips and visits to the nail salon, you’ll need to listen up. 

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Sharon Desilva, who is married to Daniel Desilva, an Australian professional footballer, explained not only does she have to ‘do everything’, but she also has to look after her man when he’s injured.

Whether it be supermarket runs, cooking, cleaning and walking the dog, Sharon took to social media to show ‘the side of WAG life people don’t really see.’

Opening up about a typical day in her life, while her husband is injured, she said: “This is the reality of being married to a professional athlete and a side of it that a lot of people don't really see.

“Today, Danny had to get an injection in the back of his knee for his injury.

“He said it was one of the most painful injections.

“They take blood from his arms, spin it around in this machine, and then inject it into his knee to make it heal faster. How crazy is that technology?”

We then saw Sharon go to the supermarket and moments later she was in the kitchen cheffing up some food.

She then added: “Lately, we've been eating so many bacon and egg muffins. Well, actually, it's ham because Daniel doesn't like bacon.

“He can't really do anything, he just has to let his leg rest, but that means I have to do everything.

“Guys, let me tell you, I'm exhausted.”

Sharon explained that as a result of her husband’s injury, she has to carry a heavy machine up and down the stairs for him.

She continued: “There's a thing called a Game Ready and I have to carry it up and down the stairs with ice and stuff. 

“It's so heavy and I'm just a little girl with small arms.”

Not only was she waiting on her man hand and foot, but she then had to take her pooch for a walk too.

She explained: “I had to take Noodle for a walk because I felt so sad, he was inside the house for a couple of days.”

As the day drew to a close, Sharon shared: “And now it was time for me to enjoy a sangria because I'm just really tired.

“But yeah, an injury is no joke. It's a long, hard process for the player, both physically and mentally, having to rebuild that strength again.

“So we're just gonna have some cocoa and not think about it just yet.” 

The TikTok clip, which was posted under the username @islandgirlshaz, has clearly left many stunned, as it has quickly amassed 56,300 views.

One person said: “I play football too and this injury is the worsttttt!! Hope he gets better soon! They need to see him back in the game.”

Meanwhile, another asked: “Was this after lolleys tackle ? Was it just the mcl ? PRP into the joint maybe thinks it’s meniscus as well ?? The shin dressing is confusing me..”

To this, Sharon claimed: “Yeah it was and yes mcl! He had bad cuts up his shin hence the shin dressing ahaha.”

While a third commented: “Not the Game Ready.” 

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