As clients stop accumulating wealth, move into retirement and start withdrawing their assets for income, you'd think this would have a negative impact on their advisors' revenues. But overall, advisors expect a net increase in revenues as clients make the transition from building wealth to drawing income, according to a survey by the Financial Planning Association. The most common reasons included an increased number of clients, additional revenue from asset consolidation and market appreciation. Many investors have multiple accounts with different advisors prior to retirement, said Jack Gardner, president of Thornburg Securities Corp., which sponsored the survey. But when they reach retirement, these clients tend to consolidate these accounts with one advisor. Those advisors who are making retirement income planning a core part of their business and can articulate a clear process and plan are getting this consolidation of accounts, Gardner said. The extra revenues are also likely due to the additional services advisors are providing to baby boomers, such as financial planning, longevity insurance, annuities and estate planning. Advisors said an average of 65 percent of clients consolidate additional assets with an advisor after the advisor has provided retirement income services.
