September 24, 2015 Fact of the Day: Why Investors Switch Advisors

 

DID YOU KNOW THAT – more than 40 percent of investors stay with the same advisor their entire lifetime?

 

 

 

Did you know that more than half of high net worth investors have switched advisors sometime within their lifetime?  In fact, 58 percent of high net worth investors have switched advisors.  Spectrem Group recently completed research with investors who have switched advisors in the past to gain an understanding of what types of investors are most likely to switch advisors and why.

What types of investors are the most likely to switch advisors?  Not surprisingly, older investors, those over the age of 65, are the most likely to have switched advisors sometime within their lifetime at 46 percent.   This is, of course, because of a large number of years to have experienced multiple investment cycles.  Forty-two percent of those who switched were between the ages of 55-64 and 7 percent were between the ages of 49-54.  Six percent of switchers were under the age of 48.

Thirty-four percent of the switchers switched advisors more than 5 years ago while 12 percent switched within the last 5 years. Five percent switched within the past year and 6 percent switched within the past two years.  Millennials are the most likely to have switched in the past year at 11 percent.

 

To learn more about why investors switch advisors, click here