Affluent Investors and Advisor Dependency



From Spectrem Group’s research, among Millionaire investors with a net worth between $1 million and $5 million, more than 70 percent of investors use a financial advisor to some extent, but a majority of those are Advisor-Assisted or Event-Driven, using advisors only for advice, not direction. Sixteen percent of Millionaires consider themselves Advisor-Dependent, described as “relying on an investment professional or advisor to make most or all investment decisions”.

Among Ultra High Net Worth investors with a net worth between $5 million and $25 million, 14 percent consider themselves Advisor-Dependent Investors, even though they have much more in investable assets than the Millionaire segment. Among Mass Affluent investors with a net worth between $100,000 and $1 million, only eleven percent consider themselves Advisor-Dependent, a sign that those with less are far more interested in directing their investments themselves.

In broad generalities, women tend to be more Advisor-Dependent than men.  From Spectrem’s Investment Attitudes and Behaviors of High Net Worth Women Versus High Net Worth Men, 15 percent of women referred to themselves as Advisor-Dependent to just 11 percent of men. Among Ultra High Net Worth women, 23 percent consider themselves Advisor-Dependent to just 15 percent of UHNW men.

Age also plays a role. Nineteen percent of investors under the age of 45 consider themselves Advisor-Dependent, and 17 percent of investors over the age of 64 do so as well.



For more information on UHNW investors, click here