According to retirement and savings research firm Hearts & Wallets, when it comes to quitting a job they don’t find fulfilling, workers should have a goal of achieving financial freedom. The firm says that instead of focusing on the traditional goal of saving money for retirement, asset management firms that serve investors (between the ages of 40 and 60 with a minimum of $100,000 to invest), need to know most of those workers do not plan on leaving the workforce. 

According to a press release distributed by Hearts & Wallets, “The financial services industry needs to start executing on the reality that many investors don’t plan to retire,” said Laura Varas, a principal with the company. “Affluent accumulators told us they are saving for ‘freedom money.’ This is a polite version of the term they used to describe the pot of money that will let them walk off the job if someone treats them unreasonably, or if they simply get sick of that job and want to do something else.”

In a report, “Acquiring Mid-Career Accumulators: Positioning Advice and Disclosing Fees With Upshifting and Downshifting Investors,” Hearts & Wallets also found asset management firms should do a better job of disclosing fees. The firm also recommends every asset management company should test a variety of advice models and pricing (including fiduciary, bundled, unbundled, lump sum and hourly rates).   

Hearts & Wallets also says investment firms need to do their own research when it comes to industry marketing and advertisements. Companies should then figure out what their messages to the public should be.  

Research for the study included nationwide focus groups with investors of at least $100,000 in assets who shared reactions to four investor advice concepts.

In the company press release, Varas also said, “The major finding with the concept testing was that if your offering is positioned as a service, be a service. Service companies can describe the services they offer on key dimensions, teach the customer how to evaluate how well those services are delivered and offer choices in pricing to go up or down depending on the customer’s chosen service level.”

Modern Business Associates is an HR company that focuses on payroll and HR outsourcing.  We routinely work with clients on retirement plans. As a Professional Payroll and HR outsource organization, our clients rely on us to help them effectively deal with these kinds of topics.