What’s a Millionaire investor to do now that the elections are over? Find out what financial advisors are recommending.
What’s a Millionaire to do? President Barack Obama has been re-elected. Congress is grappling with the issues surrounding the fiscal cliff. Economic news from Europe is sobering, and U.S. markets are falling.
These recent economic events have prompted Millionaire investors to contact their advisors, and advisors to get in touch with their Millionaire clients, according to the monthly Millionaire Corner survey for November. What have advisors been recommending?
Financial advisors are most commonly telling Millionaires, “Don’t make any rash decisions,” according to our survey. More than half (54 percent) of Millionaires who talked to their advisors indicate their financial professionals have urged them to think before they act.
“One of the most important– if not the most important – role an advisor can play is helping investors avoid make decisions based solely on greed or fear – or other emotions that can cloud judgment,” said Catherine McBreen, president of Millionaire Corner. “Our research shows that investors tend to regret decisions made solely on their gut instincts.”
One-in-five Millionaires report that financial advisors are recommending they realize significant capital gains before the end of the year.
Well over half (58 percent) of the Millionaires surveyed in November report working regularly with an advisor. Following the election, one-fourth of these investors contacted their advisor, while 37 percent indicated that their advisors initiated the conversation. Millionaires were significantly more likely to initiate contact than non-Millionaire investors. Similarly, financial advisors were much more likely to reach out to Millionaire clients than non-Millionaires. Regardless of wealth level, our research shows that the primary message from advisors appears to be look before you leap.
According to the Northwestern Mutual Wealth Management Company, “an advisor can help provide the perspective, focus and discipline required to stay on a steady course to reaching your financial goals.”