While Affluent investors may differ across wealth levels in their engagement of a financial advisor, new Spectrem’s Millionaire Corner studies find that they are all looking for the same qualities that establish and nurture a constructive working relationship.
What becomes a financial advisor most?
While Affluent investors may differ across wealth levels in their engagement of a financial advisor, new studies conducted by Spectrem’s Millionaire Corner find that when selecting a financial advisor, they are all looking for the same qualities that establish and nurture a constructive working relationship.
Nine-in-ten Affluent investors place the most importance on honesty and trustworthiness, followed closely by transparency and an advisor who keeps them in the loop about their investments. An almost equal percentage places primary importance on investment track record in selecting a financial advisor.
Eight-in-ten Affluent investors prefer to work with a financial advisor who offers a depth of products and services to meet a range of wealth management needs. This is consistent with another finding that Affluent investors by far prefer working with a diverse financial firm over a specialty firm. Fees or commissions charged were also of important to roughly over 80 percent.
A significant majority of Affluent investors selecting a financial advisor are also looking for one who offers products from a variety of different companies, while nearly seven-in-ten are looking for an advisor who has been referred or recommended by a trusted associate.
The other factors Affluent investors consider to be important when choosing an advisor include the reputation and renown of the advisor’s company and website and online services.
Less than 10 percent across all wealth levels consider use of social media platforms such as Facebook and LinkedIn to be a factor when choosing an advisor.
Not surprisingly, older investors surveyed place higher importance than their younger counterparts on personality and service, such as honesty, trustworthiness, transparency, referrals, depth of products and services.
The least wealthy Affluent investors surveyed, who tend to be younger and more tech-savvy, put a higher premium on website and online services as well as usage of social media platforms when selecting a financial advisor.
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.