With great wealth comes great confidence in one’s financial literacy, according to research Spectrem has conducted among Affluent investors. Four-in-ten Ultra High Net Worth investors with a net worth between $5 million and $24,9 million consider themselves very knowledgeable about financial products, compared with 22 percent of Millionaires.
As wealth level increases, so does the importance these investors place on financial knowledge. In a Spectrem survey conducted last year, 88 percent of those with at least $1 million net worth said that financial knowledge was “extremely important” or “important” to them, compared with 82 percent of those with a net worth between $500,000 and $1 million and 74 percent of those with a net worth of less than $100,000.
One of the primary benefits wealthy investors say they receive in working with a financial advisor is broadening their scope of knowledge about financial products and investments. On this score, UHNW investors are expressing more satisfaction with their advisors over the last few years. Eighty-two percent of respondents to the Spectrem study said they were satisfied with their advisor’s knowledge and expertise, up from 76 percent in 2009.
The quest for information among wealthy investors seems to be aspirational. Among Millionaires with a net worth between $2 million and $2.9 million, for example, three-fourths feel there is much more and much better information available regarding investments than there has been in the past. This is four percentage points higher than those in the $3 million and $4.9 million bracket.
Similarly, 21 percent of Millionaires in the $2 million-$2.9 million bracket said they have recently subscribed to additional financial publications and/or websites, compared with 19 percent of Millionaires in the next net worth segment.
Even in this increasingly digital world, though, old school newsletters have a higher satisfaction rating than do blogs across all wealth levels.