Spectrem’s Wealth Segmentation Series report Advisor Relationships and Changing Advice Requirements details how investors use their advisors, as well as what they think about the advice they get, especially when it comes to product recommendations.
What would most compel a non-Millionaire investor to consider using a financial advisor? According to a new wealth level study conducted by Spectrem Group self-directed investors are most likely to seek professional personal finance advice in the case of a change in their financial situation.
More than investment track record, fees or commissions charged or referrals or recommendations, a financial advisor’s perceived honesty and trustworthiness are considered by wealthy investors to be the most important factor in selecting a new advisor. Which firms make the grade for America’s ultra-wealthy households?
At lower levels of personal wealth, the role of a financial advisor becomes problematic for an investor. Spectrem’s quarterly series of reports on wealth examines investors with a net worth between $100,000 and $1 million. Known as the Mass Affluent, these investors indicate that many do not use a financial advisor because they are uncertain whether they need to based on their level of wealth.
Advisor satisfaction among the wealthiest investors continues to be the highest. Spectrem’s quarterly research in its Wealth Segmentation Series – Relationships with Advisors – details the rise in satisfaction among all investors at all wealth levels, although there are significant statistical differences in the level of increase based primarily on age and level of wealth.
In Spectrem’s study of the wealthiest investors – 2014 $25 Million Plus investor – 45 percent of investors are investing in tax-free bonds in order to decrease their tax burden. Similarly, 45 percent are meeting, or have meetings scheduled, with tax attorneys or financial advisors to determine how best to attack and decrease their tax bill.
There are a host of national issues of concern to America’s wealthy ranging from the political environment and government gridlock to the national debt, the federal deficit and the prolonged economic downturn. So say America’s ultra-high net worth households, according to Spectrem Group’s wealth level research of homes with a net worth between $5 million and $24.9 million (not including primary residence)
The personal trust market is consolidating among the largest banks, according to data compiled from the FDIC for Spectrem’s 2014 Personal Trust Update.
Spectrem’s 2014 Personal Trust Update, an annual examination of the trust industry in the United States, shows growth as might be expected in a growing and more confidence economy.
Roughly three-fourths of America’s ultra-wealthy individuals will be passing their wealth on to their children (74 percent) and their spouses (73 percent) according to a new wealth level study conducted by Spectrem Group, households with a net worth of at least $25 million (not including primary residence).
The Spectrem Affluent Investor Confidence Index (SAICI®) surged eight points to 13, its highest reading since February 2006 and the biggest month-to-month increase since last March. The Spectrem Millionaire Investor Confidence Index (SMICI®) gained 6 points to 19, a 12-month high.
According to Spectrem Group’s study of investors with a net worth of at least $25 Million Plus (Not Including Primary Residence), 85 percent make charitable donations annually, and 47 percent donate at least $10,000 per year. Twelve percent give at least $100,000 annually to charitable organizations.