The financial providers that have relationships with ultra wealthy investors are often different from those of investors with less wealth, a detail proven by data from Spectrem’s report Asset Allocation, Portfolios and Primary Advisors.
The report included data on affluent investors from different wealth segments, from those with $100,000 in net worth (not including primary residence) to those with $25 million in net worth. While the higher net worth investors tend to migrate to the same companies (Bank of America, Fidelity and Charles Schwab) for all of their banking needs, the investors with a net worth between $100,000 and $1 million tend to have a more varied choice of companies they work with.
Known as the Mass Affluent in the report, the provider they are most familiar with is Bank of America (85 percent), followed by Wells Fargo (77 percent) and JP Morgan Chase (75 percent). Fourteen different companies are known by at least 50 percent of Mass Affluent investors.
However, when asked to identify the company with a high social media presence, Charles Schwab and Bank of America were each tabbed by 71 percent of Mass Affluent investors, while Citi came in at 69 percent. Eighty percent of Mass Affluent investors under the age of 36 noted the social media visibility of BMO Harris.
The study asked Mass Affluent investors if they were going to start with or increase their usage of a company, which they would want to be more involved with. The top companies in that category were Vanguard and Fidelity, each chosen by 31 percent of Mass Affluent investors.
When it came to reputation, Fidelity got the top marks for expertise in managing money, chosen by 78 percent, followed by Vanguard (76 percent) and Charles Schwab (76 percent). Fidelity (64 percent) and Vanguard (63 percent) were again the top two companies in terms of those with innovative products and services.
Fidelity (78 percent), Charles Schwab (77 percent) and Vanguard (75 percent) got the top three grades from Mass Affluent investors among companies with talented advisors and staff.
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