Not all investors use a personal financial advisor – but those who do say they reap a number of benefits. Learn the top three.
Not all investors work regularly with a personal financial advisor – but those who do feel the relationship provides them with valuable benefits, according to the latest monthly poll from Millionaire Corner.
Most investors have not established an ongoing relationship with a personal financial advisor, according to our October poll of more than 1,350 investors from a range of wealth levels. Though a majority of Millionaires works regularly with an advisor, less than half of non-Millionaires have an ongoing relationship with a financial professional. In fact, less than 12 percent of individuals with less than $100,000 in investable assets work regularly with an advisor.
Investors who do have an ongoing relationship with a personal financial advisor perceive the relationship as advantageous, according to our research. What do investors see as the top three benefits of working with an advisor?
1. Information is Power: More than 70 percent of investors say working with a personal financial advisor improves their knowledge of investing. Our research shows that affluent investors consistently rank “smart investing” as a top wealth-building factor and put a high premium on financial literacy.
2. More Choice: Roughly 64 percent of investors indicate that working with a personal financial advisor provides them with a wider range of investment opportunities. Millionaire Corner research shows that affluent investors indicate they are most likely to work with a large, national financial service firm and prefer an advisor who offers diverse investment products.
3. Better Performance: More than 60 percent of investors feel that working with a personal financial advisor will improve their investment returns. As a group affluent investors are largely moderate risk takers, but they embrace the strategy of diversification to improve returns while reducing portfolio risk.
Though a personal financial advisor offers many benefits, half the affluent investors surveyed in October perceive the fees charged by an advisor as a possible disadvantage.