On average, ultra high net worth investors manage about half of their assets without professional assistance, according to a new Spectrem study of households with a net worth between $5 million and $24.9 million (not including primary residence). The report, “Advisor Relationships and Changing Advice Requirements,” further finds these wealthy investors consult a professional advisor about one-third of their assets, but still make the final financial decisions themselves.
The remainder allows a financial advisor to completely manage just under 20 percent of their assets without any input from them.
Across age groups, wealthy investors under the age of 55 are the most hands-on with their portfolio. They report controlling 56 percent of their assets with no professional help. Seniors 65 and up are the most likely to consult with a professional advisor in some capacity. They manage less than half (46 percent) of their assets.
The wealthiest segments (with a net worth between $15 million-$25 million), too, are most likely to entrust the highest percentage of their assets (29 percent) to a professional advisor without any input from them.
With great wealth comes great confidence in one’s financial acumen. Three-fourths of ultra high net worth households said the primary reason for not using a financial advisor is that they could do a better job of investing than a professional. This mindset is heightened among older investors ages 65 and up (82 percent).
For more information on the UHNW investor, click here