Advisors need to sit down with high net worth investors for specific planning purposes to keep investors satisfied.
Given the opportunity to do so, most financial advisors are capable of tackling numerous planning or investment tasks for their high net worth investors.
It turns out that the more tasks an advisor performs, the more satisfied a client is in the services of the advisor.
Spectrem’s Millionaire Corner study How Financial Advisors Can Increase Client Satisfaction and Loyalty shows numerous plans advisors can offer clients that appear to increase client satisfaction.
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Overall satisfaction among investors is at 73 percent, but the wealthier investors, with a net worth between $5 million and $25 million, report an 80 percent satisfaction rate.
Here are five topics advisors can discuss with their clients that seem to increase satisfaction among clients:
Planning for Retirement – Only 49 percent of investors have received this advice from their advisor, but among those that have, 84 percent report satisfaction in their advisor. Twenty-seven percent of investors say they don’t need the advice, and among those, advisor satisfaction is just at 61 percent. Twelve percent say they will seek the advice in the future, but their satisfaction rate without that advice is just at 47 percent.
Setting up a Financial Plan – Only 46 percent of investors have set up a financial plan with the aid of their advisor, but among those that have, 84 percent report satisfaction in their advisor. Fourteen percent of investors say they will see that advice from their advisor in the future, but in the present, their satisfaction rate is just at 53 percent.
Investment Planning or Asset Allocation Policy – More than half of all investors (53 percent) say they have gone through this exercise with their advisor with an eye toward increasing the size of their portfolio. Among them, 84 percent report being satisfied with their advisor. Thirteen percent are looking forward to having that conversation with their advisor, but without it, only 46 percent report advisor satisfaction.
Selecting Stocks, Bonds and Mutual Funds – Fifty-two percent of investors have played the market with their advisor, and among them, 84 percent report satisfaction. Ten percent plan to seek out such advice in the future, and only 44 percent of them are currently satisfied.
Tax-Advantaged Financial Strategies – Taxes can eat up investment profits, but they don’t have to. Only 46 percent of investors say they have had this conversation with their advisor, but among those that have, 87 percent report satisfaction in their advisor. Eighteen percent of investors express the desire to get that advice from their advisor, but without it, only 49 percent report satisfaction.
The final tally? If advisors talk to their high net worth investors about any of a variety of financial or investment plans, the investor will probably report greater satisfaction in their advisor.
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.