RSS Facebook Twitter LinkedIn

Featured Advisor

Kim Butler

Partners for Prosperity, Inc.

City:Mt. Enterprise

State: TX

I have 20+ years of handling alternative investments in cash, growth and income for clients nationwide.  I strive to help my clients with all things financial in every way possible over the phone and the web.  I own an alpaca farm which I enjoy working during my downtime.  I also enjoy gardening, writing and reading books.  I also train other advisors on Prosperity Economics.

Click to see the full profile

Share |

Advisor-less Investors Know What They Want

Honesty, trustworthiness, transparency and communication are key qualities an advisor-less would want in a future advisor. 

| BY Kent McDill

Almost one-quarter of all American investors operate without the use of a financial advisor. Some do so because they don’t want to pay the fees (or don’t think their portfolio warrants an advisor) while others do so because they believe they can do a better job at investing than a professional.

However, even without using an advisor, these investors know what qualities they would want in an advisor if they decided to change their investing procedures.

Spectrem’s new study Lost Without an Advisor: How to Attract Advisor-Less Investors details the thinking of investors who do not currently use advisors. The study notes that only between 7 and 14 percent of those investors consider it likely that they will ever use an advisor.

First, let’s look at the opinions of investors who think they can do a better job investing than an advisor. Ninety-three percent of those investors say they want their advisor to be honest and trustworthy, and 90 percent want an advisor to provide transparency and keep the investor informed as to what they are doing.

Almost 90 percent would look at the investment record of an advisor, and 89 percent would examine the fees or commissions charged by the advisor. Three-quarters of investors who think they could outperform a financial advisor would want an advisor who offers products from a variety of different companies, and 71 percent would want their advisor to provide services via a website or online.

As might be expected, investors who think they could do a better job than a professional are more opinionated about what makes a good advisor than those investors who simply don’t use an advisor due to cost.

Among the investors who don’t want to spend money on an advisor, 87 percent would want an advisor who is honest and trustworthy and also would wan tan advisor who provides transparency and keeps the investor apprised of what is going on with the investments. Eighty-four percent would want to know the investment record of the advisor, and 73 percent would want an advisor who offers a variety of investment products from different companies.


About the Author

Kent McDill

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 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.