CHICAGO, October 16, 2014 — For the affluent investor, the relationship with their financial advisor is usually developed over many years and is multi-faceted. Spectrem Group’s newest research report – Advisor Relationships and Changing Advice Requirements – discusses the depth of the relationship between an investor and advisor for three wealth segments and analyzes differences in risk tolerance, expectations and communication preferences.
Key findings include:
· Younger investors in all three wealth segments express less satisfaction in their advisor than older investors, many of whom have long-term relationships with their advisor. Among Mass Affluent investors (with a net worth between $100,000 and $1 million) overall satisfaction is at 69 percent, but is only 56 percent among investors between the ages of 36 and 44.
· Almost two-thirds of Ultra High Net Worth investors (with a net worth between $5 million and $25 million) would change their financial advisor if they do not get phone calls returned in a timely manner, and more than half feel the same way about email communication.
· While only a small percentage of financial advisors have a legal fiduciary relationship with their clients, most investors believe their relationship includes a fiduciary duty. Among Millionaire investors (with a net worth between $1 million and $5 million) 85 percent feel their advisor is a fiduciary.
“There is a disconnect between an investor’s understanding of a fiduciary relationship and an advisor’s,” says George H. Walper Jr., president of Spectrem Group. “This disconnect could lead to major conflict between the investor and the advisor if the reality does not match the expectation when it comes to fiduciary responsibility.”
About Spectrem Group: Spectrem Group (www.spectrem.com) strategically analyzes its ongoing primary research with investors to assist financial providers and advisors in understanding the Voice of the Investor.
About Millionaire Corner: Spectrem's Millionaire Corner website (www.millionairecorner.com) provides information for investors about investors. With its Best Financial Advisors service, investors are able to search for financial and investment advisors to assist in growing their wealth.
Charts and summary insights available upon request.