Facebook Twitter LinkedIn
Register for our daily updates!


Featured Advisor



Ed Meek
CEO/Investment Advisor

Edge Portfolio Management

City:Winfield

State: IL



BIOGRAPHY:
At Edge, a low client to advisor ratio allows for personal and customized service for each individual.  Our goal is to work as a team for each client to provide not only portfolio management but wealth coordination and financial planning.  We make every effort to have frequent communication with our clients and to provide timely response to calls and emails.  I also enjoy spending time with my wife and three kids, playing and following basketball, playing golf, and participating as an advisory board member for Breakthrough Urban Ministries.

Click to see the full profile


Share |

Millionaires, Investments and Advisor Usage

Seven-in-ten Millionaire investors use a financial advisor in some capacity, whether it be a specific purpose, such as planning for retirement or saving for college, or to handle all financial and investment decisions.

| BY Donald Liebenson


Seven-in-ten Millionaire investors use a financial advisor in some capacity, whether it be a specific purpose, such as planning for retirement or saving for college, or to handle all financial and investment decisions.

When it comes to money management, Millionaires, confident in their financial knowledge, are less likely to use a financial advisor to manage their equity investments than they are their other investments. Less than half use a financial advisor for this purpose, according to a Sprectrem Group wealth level study of households with a net worth of between $1 million and $4.9 million, not including primary residence.

The highest percentage (47 percent) rely on an advisor to manage their international exchange traded funds (ETFs), while 44 percent use their advisor to manage their international/foreign mutual funds. Among four-in-ten of these surveyed Millionaires, their advisor is primarily responsible for managing their U.S. stock mutual funds and domestic ETFs. Only 26 percent are primarily responsible for managing individual U.S. Stocks.

A higher percentage of Millionaires is more likely to cede primary responsibility to their financial advisor to manage their fixed income investments such as individual corporate bonds (52 percent), municipal bond mutual funds (51 percent), Fixed income ETFs (48 percent) and individual municipal bonds (47 percent).

Millionaire investors are most likely to turn to their advisors to manage other types investments that are more difficult to buy or that the investor believes he or she needs extra help to manage. Nearly two-thirds (65 percent) report that their advisor is primarily responsible for managing their hedge funds, Six-in-ten advisors are primarily responsible for managing futures (63 percent) and commodities(60 percent) with 59 percent primarily responsible for managing venture capital investments.

Many of these investments, such as hedge funds, require that the investor have a net worth of at least $1 million, so it is not surprising that the highest percentage of these surveyed Millionaire investors for whom advisors are primarily responsible to managing these investments have the highest net worth of this segment ($3 million-$4.9 million).  



About the Author


Donald Liebenson

dliebenson@millionairecorner.com

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.