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Asset Preservation Advisors


State: GA

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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Older Investors Tend to Rely More on Advisors

Older investors express a higher level of dependence on financial advisors – but also have the highest expectations. Learn more.

| BY Adriana Reyneri

Most elderly high net worth investors rely heavily on advisors, according to new Millionaire Corner research, which also finds that older investors have extremely high expectations for their financial professionals.

More than half (53 percent) of high net worth investors ages 65 and older indicate they rely on and trust their financial advisors for the “vast majority” of their financial needs, according to our recently published study, UHNW 2012 – Volume 3 – Relationships with Advisors.

The tendency to depend on advisors increases with age, according to our research, which finds that only 27percent of high net worth investors ages 45 to 54 depend on an advisor for most of their financial needs.  (The high net worth have investable assets of $5 million up to $25 million.)

Older investors may be more advisor dependent, but they are certainly not pushovers and set a relatively high bar for service. More than 70 percent would fire an advisor who failed to return their phone calls in a timely manner, and more than 60 percent would leave an advisor who did not provide them with good ideas and advice. Younger investors aren’t quite so demanding.

And while older investors rely more on financial professionals, they appear to value the safety and brand name of their financial firm more than their relationship with any one advisor. More than half (52 percent) would stay with their financial firm rather than follow their advisor to a new firm.

Older investors also place a relatively high premium on an advisor’s character. Our study found that 100 percent of high net worth investors ages 65 and older feel it’s important that their advisor is honest and trustworthy, and 97 percent want an advisor who provides transparency and keeps them informed of what they are doing. Younger investors also prize these qualities, but not to the same degree.

Older investors are also more sensitive to the fees charged by advisors and more than half cite the factor, “I find the services of a professional advisor to be very expensive.”