A failure to communicate is the likeliest reason a Millionaire investor would have for changing their financial advisor. Spectrem research reveals.
In the study of investors with a net worth between $1 million and $5 million Not Including Primary Residence, investors said that when it comes to maintain a relationship with an advisor, communications problems were more important to them than understanding risk tolerance, or offering sound ideas and advice.
Nearly two-thirds of Millionaires (63 percent) said that they would change financial advisors because their phone calls were not returned in a timely manner. Sixty percent cited a failure of their financial advisor to be pro-active in contacting them as their biggest pet peeve, while half said they would change financial advisors if their emails were not returned promptly.
What do Millionaires consider to be an acceptable time frame for their advisor to return a phone call? Nearly one-third (32 percent) are content with hearing from their advisor by the next day. The youngest Millionaires have more demanding expectations. Thirty-two percent believe that three-to-five hours is the acceptable time frame to have a phone call returned.
They are similarly exacting when it comes to their emails. Thirty-five percent of Millionaires are satisfied to have them returned by the next business day. Among those who believe one-to-two hours is the acceptable time frame for a financial advisor to return an email, Millionaires under 45 comprise the highest percentage (26 percent vs. 17 percent of Millionaires overall).
This is not surprising. Young people are generally more tech-savvy and wired for the instant-gratification that mobile technology offers.
For a majority of Millionaires, it is important just to have their communication acknowledged. Nearly six-in-ten (57 percent) said it is sufficient for someone in their financial advisor’s office to get back to them. Forty-three percent said they would wish to hold out for the advisor. Millionaires under 45 are the most demanding that they speak with their advisor personally (59 percent).
Generally speaking, the highest percent of Millionaires (41 percent) report that they hear from their financial advisors on a quarterly basis, while about one-fourth say they hear from their advisor monthly. This is consistent with the expectations of the Millionaires surveyed.