The U.S. equity markets are outperforming nearly every major stock market this year, but high net worth investors think their financial advisors have missed the upside.
According to a survey by Spectrem Group, financial advisors are largely treading water with many wealthy investors, and worse, have lost significant ground with a key wealth segment, the company said in a press release.
A total of 73 percent of America’s one percenters, all millionaires with at least $5 million in net worth, say they are satisfied overall with their financial advisor. Not bad. But that is down from 81 percent in 2010.
The number of satisfied Millionaire investors, at 72 percent, and Mass Affluent, at 69 percent, is even lower.
Other troubling signs: More than one-quarter of investors in all three wealth segments say they do a better job of investing than their advisors and only about half would follow their advisors to a new investment firm, Spectrem’s proprietary research shows.
“Wealthy investors are relying less on advisors despite the fact that the majority are retired or approaching retirement,” said George Walper, president of the Spectrem Group. “Advisors need to demonstrate sophisticated, in-depth knowledge about taxes, financial planning and related issues while working more collaboratively with investors who may well have identified investing opportunities on their own.”
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