Advisor forecast: Russell 1000 stocks to rise 6.3 percent

The top advisor-initiated conversations were about portfolio rebalancing (48 percent), portfolio performance (43 percent) and running out of money in retirement (30 percent).

Nearly three-quarters (72 percent) of advisors surveyed by Russell Investments say they want more resources to help them acquire clients in or near retirement (net spenders). Only 39 percent desire additional resources to acquire news clients (net savers).

Many advisors also are seeking clients in their peak earning years (70 percent), female clients (55 percent) and individuals with specific tax management needs (45 percent)

When asked what the key is to creating a valued client relationship, survey respondents answer as follows:

• Communicate the value of an advisory relationship (74 percent)
• Educate clients about realistic return expectations (65 percent)
• Keep clients focused on their long-term goals during volatile periods (63 percent)
• Guide conversations toward controllable factors (60 percent); and
• Help clients understand the effect of diversified portfolio on over- and under-performing equities (55 percent).

On average, the survey notes, advisors expect the Russell 1000 Index to close out 2014 at 1139, an increase of 6.3 percent for large-cap stocks. That translates to an annual return for 2014 of 11.18 percent.

For the Russell 2000 Index, the expected gain is 3.58 percent. And the yield for the 10-year Treasury is forecast to dip by 12.67 percent for the year.