For many investors, it is simply not enough to have an advisor who provides information and guidance on investment opportunities.
Some investors want more. They want benefits that go beyond the bottom line.
Spectrem’s monthly survey of investors with a net worth up to $25 million explored a second round of benefits investors have requested from their advisor. These services are known as concierge services. A previous round of questions from Spectrem - Well, What Do You Expect? - examined investors’ desires for services that involve major financial decisions such as buying a house or buying a new automobile.
But investors have other interests and they think advisors should provide some compensation beyond their normal services in the client agreement.
Valerie Brown, executive chairwoman of Advisor Group, told Investment News the new atmosphere for advisors is to be “life coaches" who are involved in many other aspects of their clients’ lives. “I think the industry is going through a massive change" regarding the job description of a financial advisor, she said.
With that change in mind, Spectrem asked investors about several other possible offerings their advisors could provide that would enhance the advisor experience. Investors were asked to place their interest in such services on a 100-point scale.
The most popular choice among the second round of concierge questions was airline miles or hotel points. It is possible to gain such perks through all sorts of credit card purchases and investors apparently like the idea of gaining such points with investment transactions. The rating of the appeal of such an offering was 45.54, which is below the midpoint but higher than other suggestions.
The only other suggestion that reached above 25.00 was recommendations for contractors for projects on the home. This would require advisors or providers to be linked to a home repair service website or company, of which there are several nationally. The preference for that offer was at 27.37.
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