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Featured Advisor

Asset Preservation Advisors


State: GA

APA’s philosophy is to work closely with our clients to develop an in-depth understanding of their unique needs and objectives. We then customize a municipal bond portfolio that best meets their specific goals and needs. APA manages high quality municipal bond portfolios in four strategies: Short-Term, Intermediate-Term, High Income, and Taxable.

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Advisors Help the Rich Get Richer

Less affluent investors say they don’t get as much help from financial professionals. What are advisors missing?

| BY Adriana Reyneri

Millionaire investors say that their financial advisors help increase their investment yields, give them access to a wider range of investment opportunities and make them smarter investors. Less affluent investors report receiving less frequent and differing types of advice from their financial professionals.

Highlights of our monthly poll for February give insights into the way advisors consciously or unconsciously differentiate the advice they give to Millionaire and non-Millionaire clients:

·         ETFs: Nearly 58 percent of high net worth investors say their advisor discusses the role ETFs can play in their investment portfolio. The share drops below 13 percent for those with less than $100,000 to invest.  Our research also indicates that the high net worth are six times more likely to invest in ETFs in the coming year and report a higher level of awareness of the advantages associated with ETFs, such as relatively lower costs, diversification and liquidity.

·         Estate Planning: Less affluent individuals are significantly less likely than high net worth investors to have an estate plan (44 percent vs. 94 percent).  Among investors with estate plans, the high net worth express higher levels of confidence that their estate plan will be executed in keeping with their wishes. Nearly 97 percent say they are confident or very confident their estate plan reflects their wishes and will be executed properly, compared to 68 percent of individuals with less than $100,000 to invest. A large majority of high net worth investors (62 percent) plan to introduce family members and friends to their advisor to review their estate plans. The share falls to 31 percent for investors with less than $100,000.

·         Changing Regulations and Rules:  New tax and estate laws have implications for most investors, but the high net worth are significantly more likely to have received help coping with legislative changes than less affluent investors.

·         Investment advice: More than two-thirds of Millionaires say their advisors have helped them reallocate assets in the past year, and one-third or more have been introduced to new investment options of educated on market conditions and economic trends. These percentages drop significantly with wealth.

Many non-Millionaire investors are young and upwardly mobile and are looking for the same levels of service typically reserved for more affluent investors. Advisors who provide can be rewarded with a loyal and rapidly growing book of business.