Investors want their financial advisor to be willing to communicate and be transparent about what is going on with their investments.
An investor looking for a top financial advisor to work with is going to want that advisor to have the most credible and respect-worthy attributes possible.
A study of wealth investors by Spectrem’s Millionaire Corner shows that investors have an expectation of honesty and trustworthiness in their financial advisors.
Ninety-seven percent of Ultra High Net Worth investors with a net worth between $5 million and $25 million said the top quality of a financial advisor is that they be honest and trustworthy. Ninety-three percent said a top financial advisor should “provide transparency and keeps me informed on what they are doing.” Ninety-one percent said the investment track record is the key for a top financial advisor.
Characteristics chosen by at least 80 percent of UHNW investors were “fees or commissions charged” (84 percent), and “depth of products and services to meet the range of wealthy management needs” (80 percent).
The depth of products and services was especially important to investors who identified themselves as managers, with 94 percent choosing that as a key component of a top financial advisor.
A financial advisor’s association with a well-known brand or company received a varied response from UHNW investors when segmented by occupation. While 60 percent overall said that was a key component, only 49 percent of professionals and 52 percent of business owners said so. On the other end of the spectrum, 76 percent of managers thought the brand or company matters, as did 69 percent of senior corporate executives.
Less than half (46 percent) of UHNW investors feel that most financial advisors are very professional and knowledgeable, and investors ages 45-54 are less convinced, with only 39 percent giving most financial advisors the positive nod.
Sixty-nine percent of UHNW investors feel a top financial advisor should come with a strong referral from a trusted friend or associate, and 69 percent also believe a top advisor should offer products from a variety of different companies. Sixty percent believe top advisors should have a website or offer online services.
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.