A new study by Securian Financial Group looked at the different challenges facing small business owners of different generations. What it found is that Baby Boomers and GenXers have similar concerns, but could use the advice of financial advisors for their varied saving priorities.
The report pointed out that like other investors, life stages shape the concerns and decision making for small business owners. Many more GenXers have children living at home so it is more important for them to take care of their family financially. Of course this focus doesn’t make them more conservative investors. They are more willing to take risks with personal funds for higher potential gains.
Half of Boomers surveyed said they already work with a financial advisor, but these small business owners are more concerned with their personal retirement plans and exit strategy and are less concerned with the day-to-day financial challenges they face.
GenXers are more likely to share decision making with others for financial decisions on both personal and professional matters. That is partly a result of how their businesses are organized, either as limited liability companies or partnerships. Not many Boomers have LLCs or LLPs.
Both generations are motivated to use advisors because they want to save for retirement, need a change in financial resources, need consulting or strategy help or need help with taxes, according to the report.
Almost one-third of GenX small business owners said they would consider using a financial advisor for an exit strategy, annuities, brokerage accounts, capital management and personal retirement plans.
Fewer Boomers plan to use a financial advisor for any financial services they do not already use.
Both generations already use an advisor for personal and employee retirement plans. Boomers are more likely to use advisors for brokerage accounts and personal life insurance.
Both generations also find it difficult to find a trusted financial advisor to help with their business needs and that financial advisors are not easy to do business with.
Securian worked with CMI, a full-service market research firm, with expertise in the financial services industry, to implement the study. The online study took place from May 9 to June 1, 2011, with 453 U.S. business owners with between three and 250 employees.
Securian Financial Group offers insurance, retirement plans and investments to individuals and businesses.