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Asset Preservation Advisors




City:Atlanta

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APA’s philosophy is to work closely with our clients to develop an in-depth understanding of their unique needs and objectives. We then customize a municipal bond portfolio that best meets their specific goals and needs. APA manages high quality municipal bond portfolios in four strategies: Short-Term, Intermediate-Term, High Income, and Taxable.

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Failure to Communicate? High Net Worth Investors Sound off on Advisors

Investor satisfaction with their financial advisor is predicated on expectations of elite service, which increases with net worth.

| BY Donald Liebenson

Eight-in-ten Millionaires in America use a professional advisor, according to a new Spectrem’s Millionaire Corner Affluent Market Insights report.

Advisor usage increases with wealth level, the report finds, with 88 percent of investors with a net worth of at least $5 million (not including primary residence) report consulting with a finance professional compared with 81 percent of Millionaires with a net worth up to $4.9 million and 69 percent of non-Millionaires. A substantial majority of all three wealth segments consult with a full service broker over other types of financial planners and professionals.

Millionaire investors are not as concerned as their non-Millionaire counterparts with maintaining their current financial position or being able to retire when they want. They are more confident that their personal financial situation will be stronger one year from now than at present, the Millionaire Corner report finds.
They are concerned more with securing the financial situation of their children and grandchildren, a priority for 57 percent of the wealthiest respondents and 61 percent of millionaires with a net worth up to $4.9 million.

Nearly three-fourths of Affluent investors surveyed expressed satisfaction with their financial advisor, which is reflected in the finding that less than three-in-ten (28 percent) are concerned about getting adequate help and advice in reaching their financial goals.

But this satisfaction is predicated on expectations of service, which again, increase with net worth. For the high net worth investor with at least $5 million net worth, not having their phone calls returned is an especial pet peeve that would cause 67 percent of respondents to change advisors.

High net worth investors are the least likely to appreciate having a call to a financial advisor returned at least by the next day (26 percent vs. 36 percent of Millionaires and 46 percent of non-Millionaires). Nearly three-in-ten (28 percent) expect their called to be returned within one-two hours, vs. 20 percent of Millionaire and 18 percent of non-Millionaire.

High net worth clients are no less demanding when it comes to having their emails returned. Almost one-fourth (23 percent) expect they will be returned within 3-5 hours, compared with 21 percent of Millionaires and 19 percent of non-Millionaires. Similarly, 22 percent expect their emails to be returned within 1-2 hours, vs. 17 percent of their less wealthy cohorts. Few Affluent investors expect their emails returned within the hour, but here again, it is the high net worth client most likely to be checking their inboxes (8 percent vs. 6 percent of Millionaires and 5 percent of non-Millionaires).

Among the primary benefits to working with a financial advisor, Affluent investors have told Millionaire Corner, is peace of mind. Which is why nearly six-in-ten high net worth investors said they would change advisors if he or she was not proactive in contacting them. More than half (54 percent) said they would change advisors if they felt they were not providing them with good ideas or advice. In these last two cases, Millionaires were more likely to say they would change advisors for these actions (or inactions).

High net worth investors are more likely than their less-wealthy counterparts to change advisors over losses. Patience over losses runs out over the space of two years (30 percent). Slightly fewer are willing to endure losses over the space of five years (27 percent). Only 12 percent would change advisors over losses incurred in just one year.



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. 

 


 

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