Age and advisor dependency are both factors when looking at client satisfaction. Generally, older investors have a habit of being more satisfied with their advisors, which may be because they have had a longer relationship with the advisor. Satisfaction with investors over the age of 65 is at 77 percent, and 42 percent of those say they are “very satisfied”. Among investors younger than 44, satisfaction is just at 62 percent and only 24 percent consider themselves “very satisfied”.
Financial knowledge highest coveted by the highest net worth, according to a Spectrem Group study. More than half rate their financial knowledge as “extremely important” to them, while nearly 40 percent say it’s important. On the other hand, about a quarter of investors with less than $100,000 say their financial knowledge is “extremely important” while 47 percent say it is “important” and about 23 percent say it is “somewhat important.”
Eighty percent of Generation X investors are concerned about the prolonged economic downturn, while sixty percent are focused on maintaining their current financial position, according to a new demographic study conducted by Spectrem Group.
Do college degrees directly correlate to a person’s eventual wealth level? 81 percent of Gen X investors recognized their education as a factor in obtaining wealth. While 86 percent of WWII investors said education was a factor, only 80 percent of Baby Boomers gave education the positive nod.
At the end of March, the SEC quietly published IM Guidance Update No. 2014-4. This memorandum will allow investors to review client opinions of investment advisers or investment advisory representatives (IARs) that are posted by a third party.
From Spectrem Group’s research, among Millionaire investors with a net worth between $1 million and $5 million, more than 70 percent of investors use a financial advisor to some extent, but a majority of those are Advisor-Assisted or Event-Driven, using advisors only for advice, not direction. Sixteen percent of Millionaires consider themselves Advisor-Dependent, described as “relying on an investment professional or advisor to make most or all investment decisions”.
Spectrem Group’s study Financial Attitudes and Concerns looked at investors in three separate wealth segments and studied their tendencies when making an investment. The segments were Mass Affluent (with a net worth between $100,000 to $1 million), Millionaire (with a net worth between $1 million and $5 million) and Ultra High Net Worth (with a net worth between $5 million and $25 million).
An interesting result of the study showed that Business Owners tend to be less concerned about tax implications and much more interested in the diversity of investments and the reputations of the companies working with.
Wealth level studies conducted earlier this year by Spectrem Group find that non-Millionaires want the lowest tax-rates while surprisingly the wealthiest households would be willing to pay a higher tax rate.
Affluent investors look at a multitude of influences when selecting investments, but social responsibility is not high among them, according to a study by Spectrem Group.
Only approximately thirty percent of households with a net worth between $1 million and $5 million feel that social responsibility should be a primary investment factor. It has even less importance for wealthier investors with a net worth between $5 million and $25 million, with only a quarter of them feeling this way.
Spectrem Group research of affluent investors shows that a majority of investors make plans to retire at a certain age, but do not manage to do so. It also shows that investors are planning on not retiring at any age.
A recent Spectrem’s Millionaire Corner retirement income survey showed an almost even split of investors still living in the same house and those who have moved elsewhere (53 percent vs. 47 percent).
A Spectrem study of investors based on net income has shown more than a third (36 percent) of all investors were willing to take a significant risk in order to get a high rate of return. As income increased, so did the inclination to take the risk, but even among those with a net income of over $750,000, less than half (47 percent) said they would be willing to take a significant risk with a part of their portfolio with a look toward a high rate of return.