When Millionaires choose a financial advisor, the fundamental things still apply. Nearly all (98 percent), above all else, prize honesty and trustworthiness, according to a new Millionaire Corner wealth level study of attitudes toward advisors.
The economic collapse bruised relations between investors and financial advisors and there is some way to go before full reapproachment. In a separate Millionaire Corner survey conducted last August, eight-in-ten Millionaires said that news of a trading scandal, or other bad publicity such as excessive executive compensation, would affect their willingness to work with a financial services company.
Just under 86 percent said that a credit downgrade would likewise affect their willingness to work with a financial firm.
More than nine-in-ten Millionaires also prize transparency from their financial advisor and being kept in the loop, as well as the advisor’s track record,
Fees or commissions charged is the most important factor for choosing a financial advisor for 88 percent, while 87 percent strongly consider the depth of products and services to meet their wealth management needs. Eight-one percent want their advisor to offer products from a variety of different companies.
Just over two-thirds (69 percent) are looking for a financial advisor who has been given a strong referral of recommendation by a trusted associate.
These criteria are of near equal importance across age and wealth levels, occupations, and advisor-dependency.
Nearly three-quarters (72 percent) of Millionaires are satisfied overall with their financial advisor, according to our study, up from 70 percent last year). They are giving the highest rankings to their advisor’s responsiveness to requests (81 percent), their knowledge and expertise (78 percent) and recommendations and advice during the recession (66 percent).
Not surprisingly, older investors ages 55 and up, who are most likely to have had a longer working relationship with their advisor, expressed the most satisfaction in all of these areas.
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.