The slight improvement in the economy in 2013 perhaps prompted Millionaire investors to have greater approval of financial providers over their 2012 opinions, a Spectrem study shows.
The report – Asset Allocation, Product Ownership and Perceptions of Providers – shows that 72 percent of Millionaire investors consider banks a stable financial provider, a jump of 6 percent over the 2012 perception. Similarly, approval of full service brokers went up from 69 percent to 71 percent, and mutual fund companies were given the nod by 71 percent to 70 percent in 2012. Accounting firms were selected by 67 percent of Millionaires, a 2 percent increase from 2012.
Of the top five provider types, only trust companies dropped in regard from 69 percent to 67 percent.
The Spectrem study looked at investors from three wealth segments. The Millionaire segment includes investors with a net worth between $1 million and $5 million Not Including Primary Residence.
Banks remained the provider type most likely to meet the needs of a Millionaire investor. Sixty-six percent of Millionaires selected banks, while 61 percent picked accounting firms, 57 percent said law firms and mutual fund companies could meet their needs, and 56 percent picked full service brokers.
Eighty-eight percent of Millionaires report that they consider banks as a financial provider, while 84 percent chose insurance companies and 80 percent selected accounting firms. Only 36 percent selected trust companies as a type of financial provider they are familiar with.
But Millionaires see independent financial planners (91 percent), law firms (90 percent), accounting firms (90 percent) and independent investment advisors (90 percent) as the types of firms that offer personalized services. Online brokerage firms were selected by only 35 percent of investors for personalized services.
When asked to select the types of providers that offer talented advisors, accounting firms, law firms and full service brokers were selected by 84 percent. Again, the bottom of the barrel was online brokerage firms, which only 47 percent of Millionaires saw as a source of talented advisors.
Full service brokers were the top provider selected for offering innovative products and services. Sixty-three percent said full service brokers, followed by independent investment advisors (60 percent), independent financial planners (59 percent) and online brokerage firms (56 percent). Law firms (27 percent) were considered the least innovative provider.