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City:Atlanta

State: GA



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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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Higher Income Investors Less Satisfied With Their Financial Advisors

Investors are generally satisfied with their financial advisors, but expect a high level of responsiveness to their needs.

| BY Kent McDill

Wealthy investors with higher incomes are less likely to be satisfied with their financial advisors, a Millionaire Corner study reveals.

The report – Financial Attitudes of Wealthy Investors Based on Income – is a unique look at the investment opinions of investors who are categorized based on their income level rather than their net worth.  The study segmented investors into five income levels: under $100,000 net income, $100,000 to $250,000, $250,000 to $500,000, $500,000 to $750,000, and $750,000 and above.

While advisor satisfaction remained high among all income segments, it was highest for the $100,000-$250,000 segment, at 72 percent, and 71 percent of investors making under $100,000 said they were satisfied with their advisor. The percentage dropped to 67 percent for both the $500,000-$750,000 and $750,000 and above segments.

Advisor satisfaction was based on several advisor job duties, and satisfaction was rated highest in terms of responsiveness to requests. Eighty-one percent of the under $100,000 income segment said they were satisfied with responsiveness, while 80 percent of the $750,000 and above segment said the same thing. Only 75 percent of investors making between $500,000 to $750,000 said they were satisfied with advisor responsiveness, which is still a high percentage.

“Responsiveness’’’ is a key factor for advisors, because the N. 1 reason for changing an advisor, according to the study,  is that he or she does not return phone calls in a timely manner. Fifty-nine percent of the total study group reported that as a determining factor in making an advisor change. That was far more important than expecting the advisor to initiate the conversation, with 48 percent saying “not being proactive in contacting me” would be a reason to change advisors.

Investors are apparently willing to blame their financial advisor for losses suffering during the recent economic downturn. Asked about their satisfaction with “recommendations and advice during the recent recession”, the $250,000-$500,000 income group had only 60 percent satisfaction, the lowest reported score. The lowest income group reported 68 percent satisfaction in advisor advice during the recession.

The good news is that 15 percent of all investors can think of no reason to change their advisor.

Honesty and trustworthiness were selected as the No. 1 trait required in choosing a new advisor, the study showed.



About the Author


Kent McDill

kmcdill@spectrem.com

Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.

In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.

McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.

McDill is the father of four children, and an active fan of soccer, Jimmy  Buffett and all things Disney.