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Ed Meek
CEO/Investment Advisor

Edge Portfolio Management


State: IL

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.

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Affluent Investors and Asset Allocation

Regardless of wealth level, Millennials tend to maintain complete control over the highest percentage of their assets

| BY Donald Liebenson


For most investors, their relationship with a financial advisor is a matter of degrees.

Investors decide, either consciously or unconsciously, how much of their assets to turn over to their financial advisors. For most investors, advisors play a role in the handling of approximately 50 percent of assets, while investors maintain complete control over the other 50 percent.

But the percentages vary depending on the wealth  as well as the age and occupation of the investor, according to Advisor Relationships and Changing Advice Requirements, A Spectrem Group wealth segment study,

(To download a free preview of Advisor Relationships and Changing Advice RequirementsCLICK HERE)

Non-Millionaire investors with a net worth of at least $100,000 (not including primary residence) tend to be younger and more self-directed investors, meaning they make most of their financial and investment decisions without consulting a financial advisor. The Spectrem Group study finds that these investors control completely the highest percentage of their assets in comparison with their wealthier counterparts (59 percent vs. 48 percent of Millionaire investors with a net worth up to $5 million and 47 percent of Ultra High Net Worth investors with a net worth between $5 million and $25 million.

Conversely, they allow an advisor to control the smallest percentage of their assets without any input from them (15 percent). Millionaires cede control of 16 percent of their assets to their advisor and UHNW investors 18 percent.

Non-Millionaire Millennials, completely control a higher percentage of their assets than do their Millionaire and UHNW counterparts (73 percent vs. 53 percent and 52 percent, respectively). Among Millionaires, investors ages 45-54 control the highest percentage of their assets, 55 percent.

In Millionaire households, Millennial-aged investors cede the highest portion of their assets completely to an advisor (20 percent), while in UHNW households, the 45-54-year old investor cedes the highest percentage of their assets to an advisor (also 20 percent).

Across all wealth segments, there are significant differences in asset allocation  in the occupation segmentation. Among UHNW investors who are managers, only 13 percent of assets are handled completely by an advisor. Managers are far more likely to use advisors as consultants (with 40 percent of their assets), and more likely than most occupations to control a larger portion of their assets themselves (48 percent).

UHNW business owners  are more likely to control a larger portion of their assets without input from a financial advisor; 54 percent, with just 26 percent handled in consultation with an advisor.

Among Millionaire investors, managers turn over more of their assets to an advisor than any other occupation, doubling the others in that category. Managers report 21 percent of their assets are handled completely by an advisor, while only 12 percent of professional assets (a professional being a doctor or lawyer), 10 percent of business owner assets and only 9 percent of senior corporate executive assets are handled completely by an advisor.

About the Author

Donald Liebenson

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.