Nearly half of Millionaire investors who use a financial advisors report they rely on him or her for the vast majority of their financial needs, but these wealthy investors have specific situations for which they will consult with a professional.
According to a new wealth level study conducted by Spectrem, one-fourth of Millionaires identify themselves as self-directed investors, meaning they make all of their own financial and investment decisions without the assistance of a financial advisor. The highest percentage are event-driven, meaning they make most of their own decisions, but do consult with a financial advisor for specific purposes such as retirement planning.
When asked in what situations they use a financial advisor, 18 percent said they keep a portion of their investments with an advisor as a benchmark to compare the results of their own investing. The youngest Millionaire investors under the age of 45 are significantly more likely to use a financial advisor for this purpose (35 percent) followed by those between the ages of 45-54 (22 percent).
A majority of Millionaire investors (53 percent) say they enjoy investing and it is something they do not wish to give up. Again, the youngest Millionaires are most likely to share this enthusiasm (61 percent). But many believe that they can do a better job of investing than their advisor. Almost one-fourth (22 percent) of Millionaires under the age of 45 were most likely to indicate they are veering toward becoming more self-directed and relying less on an advisor, compared with 16 percent of Millionaire respondents)
Twelve percent of Millionaire investors said they rely on their advisor for certain types of investments such as real estate or alternative investments, while 11 percent said they were in the process of transitioning more of their assets to their financial advisor.