Do You Dine with Your Advisor?

11/2/2022

 Sitting down and enjoying a nice meal with someone often puts the relationship on a different level. The conversation is often more relaxed, and the individuals can get to know one another on a deeper level. Many investors see their financial advisor primarily at their advisor’s offices, although sometimes they go out to eat and enjoy a meal with their advisor. Some investor segments are more likely than others to join their financial advisor for a meal. Besides dining out, there are also many other activities that an advisor can invite their clients to, which may or may not enhance their relationship with their client.

Just over half of investors, 58 percent, have never had lunch or dinner with their financial advisor, according to recent research from Spectrem Group. Gen X investors are the least likely to have dined with their financial advisor, with 62 percent never having eaten with their financial advisor. Investors with a net worth between $500,000-$1 million have also not had the pleasure of dining with their financial advisor, with 79 percent indicating they have not ever had lunch or dinner with their advisor. As wealth increases, so does the likelihood of eating out with an advisor at least annually.

Among the 42 percent of investors that have dined with their financial advisor, the most common frequency of this occurring is once a year. This is not surprising given advisors often have a more in-depth review of an investor’s financial plan or wealth management on an annual basis. The next most common frequency of going out to eat with an advisor is less often than once a year. Eleven percent of investors have lunch or dinner with their advisor on a quarterly basis, while only 3 percent dine with their advisor once a month. Millennials are far more likely than other age segments to share a meal with their advisor, and 14 percent of Millennials dine with their financial advisor on a monthly basis, which is more than twice the percentage of any other age segment.

An advisor may often invite their client to share a meal in order to get to know the client better, but there are many other events that advisors invite clients to outside of dining. A quarter of investors have been invited to a client appreciation event. Sometimes these events can include a meal, but it is not the same as having a private dining experience. Twenty percent of investors have also been invited to a seminar. These events allow for the financial advisor to provide financial education to a large number of clients at the same time. Sports games are a type of event that 14 percent of advisors invite their clients to. This is especially utilized if the advisor and client share a passion for the same sport, or the same team.

All of these activities are meant to continue to develop the relationship between the advisor and the client. Nearly half, 48 percent, of investors indicate that their advisor inviting them to events significantly or somewhat deepens their relationship with the advisor. In contrast, 52 percent of investors feel that being invited to events by their advisor has no impact on their relationship with their advisor, positively or negatively.

While an investor may not feel that their relationship is enhanced through attending events their advisor invites them to, they may want to consider attending some events in order to learn more about their advisor, or gain critical financial education. How do you feel about dining with your advisor, or cheering on your favorite sports team alongside a financial professional?