Seniors over the age of 65 are the most satisfied with their providers, a reflection of the long-term relationship these investors have with their advisors.
America’s wealthiest households, with a net worth of at least $25 million (not including primary residence), have more confidence than their less wealthy counterparts in their financial knowledge. Therefore, their expectations of financial services providers is that their advisor provides the expertise they are unable to develop on their own.
Half of $25 million Plus households (53 percent) enjoy investing, according to wealth level research conducted by Spectrem Group’s Millionaire Corner. They rank “smart investing” only behind hard work and education as the linchpins of their financial success.
Three-fourths work with an advisor in some capacity, either for a specific purpose such as asset allocation and retirement planning (39 percent) or to make all financial and investment decisions (10 percent). Nearly eight-in-ten (78 percent) are satisfied overall with their advisor as well as with their knowledge and expertise.
Which financial providers and advisors rank best with the $25 million plus investor? Across several criteria, these investors spread the wealth.
Fidelity, Vanguard and Charles Schwab rank the highest for providers that are considered trustworthy. Schwab ranks highest for trustworthiness among the wealthiest investors (86 percent) in this demographic (with at least $125 million).
When it comes to innovative products and services, JP Morgan is ranked highest by the highest percentage of $25 Million Plus investors (66 percent), followed closely by Morgan Stanley (65 percent) and Fidelity and Charles Schwab (64 percent).
Among $25 Million Plus investors, seniors over the age of 65 are the most satisfied with their firms across all of these criteria. This is a reflection of the long-term relationship these investors have with their advisors. While, on average, these elite investors have worked with their primary advisor for 15 years, for those over 65, that tenure jumps to 16 ½ years.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.