| The purpose of this quantitative study was to examine how easily accessible Internet financial planning tools such as retirement, investment, and savings rate calculators have, if at all, affected the client base of financial planners. At year-end 2005 the U.S. retirement market totaled {dollar}3.7 trillion in assets. Individual Retirement Account (IRAs) accounted for 26% of those assets. The literature review was based upon previous literature significant with respect to the attitudes of individuals and the effects of Internet technology on the practice of financial planners. The methodological research portion of the study was based upon data collected from questions developed from previous studies and validated as having construct relevance. Findings are reported in terms of raw data, as are the results of the statistical analysis. The results of this inquiry might benefit students of finance and practicing financial planners because it seeks to clarify some of the motives consumers have for using these Internet sites in lieu of contacting professional financial planners for advice in financial, tax, estate, and retirement planning. In addition, the research model provides information as to the levels of financial planning, Internet participation, resource usage, and why consumers may stay with traditional planners. Data from the study did not suggest any adverse effects upon the client base of financial planners. However, the level of Internet usage discussed in the literature suggests that consumers do seek alternatives. Suggestions on what financial planners can do to secure their client base include accepting that (a) Internet usage is growing at a tremendous rate, (b) consumers who are being drawn to it for planning purposes may be going there because online planning tools are easy to use and less expensive than traditional planning practices, (c) the use of the Internet by different groups has legitimized the presence of that medium in the financial planning process. They should also (d) consider increasing their use of the Internet to accommodate existing clients and to attract potential clients by promoting their practice, their experience, and their people skills, and (e) consider establishing a link between their own website and financial and retirement related issues discussed on the Internet. |
