Millionaires say the advantages of using a financial advisor are numerous and far outweigh the disadvantages. Learn more.
Most Millionaires are self-made individuals and confident about their financial acumen, yet these affluent investors also show a strong appreciation for the role a financial advisor can play in building wealth, according to a monthly survey conducted by Millionaire Corner in October.
A large majority of Millionaires perceive that working with a financial advisor offers several important advantages, according to our research, while a relatively small share cites disadvantages to the client-advisor relationship. What do Millionaires see as benefits to working with an advisor?
The top benefit, from the millionaire point of view, is that an advisor “improves my knowledge of investing,” a factor cited by three-fourths of the Millionaires participating in our survey. The sentiment is consistent with previous Millionaire Corner research that shows Millionaires place a high premium on financial literacy and rank “smart investing” as one of the top three factors contributing to their wealth.
More than two-thirds of millionaires believe working with a financial advisor “provides me with a wider range of investment opportunities,” while 64 percent believe the relationship “improves my investment returns.” Just over 57 percent say working with an advisor “gives me peace of mind.”
Millionaires are significantly less likely to perceive any disadvantages to working with a financial advisor. The most significant drawback, according to Millionaires, is “higher fees,” but only 54 percent cited fees as a disadvantage. Less than one-fourth have experienced any other drawbacks to working with an advisor.
Sensitivity to fees also resonates with ongoing Millionaire Corner research that finds that Millionaires are careful spenders and rank “frugality” as the fourth most significant factor in building wealth. Roughly half of Millionaires participating in our third-quarter study on advisor client relationships indicated they found the fees of a financial advisor to be “very expensive,” but a larger share, 60 percent, indicated they were comfortable with the fees.