For high income women, it’s not always about communication.
Spectrem’s newest e-zine High Income Women Investors examines the attitudes and concerns of women investors with an income of $200,000, or a household income of $400,000. The study asks them about their use of financial advisors, why they don’t use financial advisors, and why they might change their mind about using financial advisors.
One question high income women are asked is what reasons would cause them to change financial advisors. Their answers are different than those of all other affluent advisors, and in some ways goes against other Spectrem research on the subject.
Most often, communication problems lead to advisor changes, and high income women investors shows that 61 percent of all investors other than high income women see that as a reason to make an advisor change. However, only 53 percent of high income women agree.
Similarly, only 45 percent of high income women say failing to be proactive in communication is a reason to fire an advisor, while 51 percent of all over investors feel that is a factor.
So if it is not communication that drives high income women to change advisors, what does do so?
It turns out high income women are far more interested in the investment returns than other affluent investors. Thirty-five percent of high income women say losses over two years would cause them to change their advisors, where only 24 percent of all other investors said that would be a factor.
Twenty-nine percent of high income women said losses over five years would be a factor to just 23 percent of all over investors.
High income women want their advisor to understand them in terms of their attitude toward risk as well. Thirty-eight percent said “advisor does not understand my risk tolerance” as a reason to change advisors, while just 30 percent of other affluent investors feel that way.
It is noteworthy that only 7 percent of high income women could think of no reason why they would want to change their advisor, while 12 percent of all other investors were unable to think o f a cause.
For more information on High Income Women, click here