RSS Facebook Twitter LinkedIn

Featured Advisor

Ed Meek
CEO/Investment Advisor

Edge Portfolio Management


State: IL

At Edge, a low client to advisor ratio allows for personal and customized service for each individual.  Our goal is to work as a team for each client to provide not only portfolio management but wealth coordination and financial planning.  We make every effort to have frequent communication with our clients and to provide timely response to calls and emails.  I also enjoy spending time with my wife and three kids, playing and following basketball, playing golf, and participating as an advisory board member for Breakthrough Urban Ministries.

Click to see the full profile

Share |

High Net Worth Business Owners Rely Heavily on Advisors

High net worth business owners, preoccupied with tax and credit issues, are more likely to work with financial advisors than affluent investors from other walks of life. Learn more.

| BY Adriana Reyneri

High Net Worth entrepreneurs and business owners may be risk takers, but they also rely heavily on financial advisors, according to new Millionaire Corner research on the relationships between advisors and their wealthy clients.

High net worth entrepreneurs and business owners account for the largest share of American households with $5 million to $25 million in investable assets, but this upwardly mobile group of investors distinguish themselves in other ways, as well. Our research shows that entrepreneurs and business owners are more likely to work with financial advisors than high net worth investors from all other occupations.

Eighty-eight percent of entrepreneurs and business owners report using professional advisors, compared to 81 percent of high net worth investors as a whole, according to our UHNW 2012, Volume 3 – Relationships with Advisors. Entrepreneurs and business owners are more likely to work with an accountant, attorney, independent financial planner or independent investment advisor than high net worth investors from all other occupations – but are less likely to use a full-service or discount broker as their primary advisor.

Entrepreneurs and business owners entrust a larger share of their assets to a financial professional than do high net worth investors from all other occupations, according to our research, and are least likely to believe they can do a better job of investing than a financial professional.

The majority of high net worth investors from other occupations uses one advisor, but most entrepreneurs and business owners use two or more. More than 20 percent uses three advisors and 15 percent users four. Entrepreneurs and business owners show a relatively high level of advisor loyalty, and more than half have worked with the same primary advisors for 10 or more years.

At the same time, high net worth entrepreneurs and business owners hold their advisors to a relatively high standard, and 100 percent indicate they expect their advisors to “respond promptly to my inquiries and questions.”