In-Depth Reports

Mass Affluent investors (those with $100,000—$1 million of net worth, not including primary residence) act very differently than their wealthier counterparts and are typically more open to receiving a wide range of services from their provider.

The assets that Millionaires control and the influence their actions have on the economic environment are critical to actions of financial providers and advisors. Today they are quickly beginning to use new forms of technology and new communication tools in their daily lives. Almost half are already using a Smart Phone of some type and 20 percent are using an iPad or similar device….with others contemplating their purchase.

Investors today are turning to new tools and channels to gain information about investments and to communicate with financial providers and advisors. No longer can financial services providers hide behind regulations and compliance. 

Millionaire Investors have traditionally cited Full Service Brokers as their advisor of choice, but has the continued market turmoil and concern about fiduciary responsibility altered their opinion?

The rapidly changing financial and investment environment is impacting even those investors with the largest portfolios. Concern over the markets, increased taxes and a fluctuating global environment, are causing wealthy investors to make larger changes to their portfolios than ever before. In order to effectively service these households, financial providers and advisors must understand the changing attitudes of these investors. The $25 Million Plus Investor addresses this rapidly changing market segment.

Millionaires are worried about the national debt and the political environment and these factors will continue to influence their investment decisions. In early 2012, financial fears were beginning to ease but protecting principal was still a primary concern. This philosophy has probably been helpful in the volatile markets of 2012.

Ultra High Net Worth Investors, those with $5 million to $25 million of net worth, not including their primary residence, are very satisfied with their advisors. Relying primarily on Full Service Brokers as their advisor of choice, their satisfaction levels have climbed along with their loyalty and their willingness to refer their advisors to their friends and family.

Mass affluent investors are much less satisfied with their advisors than wealthier households, but the likelihood they will change advisors in the short term remains low. This report focuses on the relationship between the advisors and these investors who are primarily still working and who are somewhat frustrated by the economic environment.

Investors today are turning to new tools and channels to gain information about investments and to communicate with financial providers and advisors.  No longer can financial services providers hide behind regulations and compliance.  Investors want access to information 24/7, they want to communicate via new channels, and they are looking for the firms they choose to provide current information via up to date offerings.

The use of smartphones, tablets and computers has changed the financial services landscape dramatically in the past decade and more change is on the horizon. Millionaire investors today are using their tablets and smartphones to access financial information 24/7. They are experimenting with new communication channels that have the potential to dominate the landscape within a very short time. Financial providers and advisors must be strategically aware of the needs of their existing and future clients to adequately prepare to meet their expanding technological and communication needs.

The use of smartphones, tablets and social media is changing the landscape of advisor/client communications.  In most cases, investors are ahead of their financial services providers in using these new channels and tools.  They are seeking additional access and functionality and looking to their financial providers to provide competitive information and services.