Trustworthiness is more important to ultra-wealthy investors than investment track record or fees or commissions charged when selecting a financial advisor
More than investment track record, fees or commissions charged or referrals or recommendations, a financial advisor’s perceived honesty and trustworthiness are considered by wealthy investors to be the most important factor in selecting a new advisor. Which firms make the grade for America’s ultra-wealthy households?
According to a new Spectrem’s Millionaire Corner wealth level study of households with a net worth of at least $25 million (not including primary residence), the firms ranked most trustworthy are:
- Fidelity Investments (83 percent)
- Vanguard (82 percent)
- Charles Schwab (80 percent)
- AllianceBernstein (77 percent)
- Northern Trust (74 percent).
It might even be more instructive to see which firms advisor-dependent respondents consider to be the most trustworthy. These are investors who rely on their financial advisor to make all of their investment decisions. Among this group, these firms were unanimously (100 percent) considered to be the most trustworthy:
- BMO (Harris myCFO)
- BNY Mellon
- Capital Guardian
- Neubeger Berman
- PNC (Hawthorne)
- Sun Trust
- U.S. Trust
- Wilmington Trust Company
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.