September 28, 2015 Fact of the Day: Why do Investors Switch Advisors?
DID YOU KNOW THAT – over one-third of Millennials have fired an advisor for not being proactive in maintaining regular contact?
Did you know that the primary reason that investors will fire their advisor is because "they were not proactive in contacting me"? In research recently completed by Spectrem Group with investors that have fired an advisor in the past, it was found that 24 percent of investors fired their advisor because he or she was "not proactive in contacting me".
It's interesting to note that Millennials were the most likely to indicate that they fired their advisor for not proactively contacting them at 34 percent while only 25 percent of those over the age of 69 cited this as a reason. Could it be that younger generations have higher expectations of financial advisors?
The second most common reason for firing an advisor was similar to the first with "my advisor did not provide me with good ideas and advice" at 23 percent. Millennials were also the most likely to cite this reason for firing their advisors at 32 percent.
Are your advisors being proactive?
To learn more about investors switching financial advisors, click here