Sixty-two percent of high net worth investors would recommend their primary advisor to others.
Many wealthy investors use multiple financial advisors for investment purposes, but there is always the one that with whom the investor has the strongest relationship.
Known as the primary advisor, it is the individual that an investor relies upon when making investment decisions.
Spectrem’s Wealth Segmentation Series examines the relationship between an investor and an advisor in Advisor Relationships and Changing Advice Requirements, an extensive look at investors of different wealth segments, ages, genders, occupations and advisor dependency.
Among Ultra High Net Worth investors with a net worth between $5 million and $25 million, Fidelity was listed as the primary advisor for 10 percent, while Morgan Stanley was listed as the primary advisor for 9 percent of investors.
Merrill Lynch was selected by 8 percent of UHNW investors, and Wells Fargo is the primary advisor for 7 percent. Charles Schwab is the primary advisor for 6 percent and was the only other company to garner at least 5 percent of the UHNW investors.
Looking at investors based on age, there are some dissimilarities with the overall totals. For instance, younger investors are more likely to use different advisors as their primary than the entire population of investors. Fifteen percent of investors under the age of 48 are more likely to use Merrill Lynch and 13 percent of investors between the ages of 48-54 are more likely to use Fidelity. Vanguard also has 8 percent of UHNW investors under the age of 48.
Among the wealthiest investors - those with a net worth between $15 million and $25 million - 12 percent use Fidelity as their primary advisor. Ten percent use Morgan Stanley, while 8 percent use Wells Fargo and 6 percent use Edward Jones.
Fifteen percent of Business Owners use Morgan Stanley and another 15 percent use Merrill Lynch. Another 11 percent use Wells Fargo. Twelve percent of Managers use Charles Schwab.
Sixty-two percent of UHNW investors said they are likely to recommend their advisor to someone they know.
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 www.nba.com. 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.