The popularity with Main Street investors of the nation's top banks is consistent with their mindset that puts a high premium on a company’s renown.
Bank of America Merrill Lynch has usurped JP Morgan Chase as the preferred banks of Main Street investors, according to a new wealth level study conducted by Spectrem’s Millionaire Corner.
Among investors with a net worth between $100,000 and $1 million (not including primary residence), Bank of America Merrill Lynch is preferred by the highest percentage (15 percent). Wells Fargo is ranked second at 11 percent, followed by JP Morgan Chase at 9 percent.
Main Street investors tend to be younger and the highest percentage (38 percent) identify themselves as self-directed, meaning they make all of their own investment decisions without the assistant of a financial advisor. But when they do consult a financial professional, most likely in the case of a specific need, such as saving for their child’s education or for retirement, they are most likely to opt for a Full Service Broker (23 percent), followed by an Independent Financial Planner (14 percent) and Investment Manager (10 percent).
Nine percent of Main Street investors rely on a banker to manager their assets. Bankers are especially popular with the youngest of these investors under the age of 45 (16 percent).
Bank of America Merrill Lynch, Wells Fargo and JP Morgan Chase are three of the nation’s top banks and their popularity with Main Street investors is consistent with their mindset that puts a high premium on a company’s renown. Of the factors they consider most important in choosing an advisor or financial services provider, nearly seven-in-ten (69 percent) main Street investors say it is most important that their advisor be associated with a well-known brand or company.
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.