Many millionaire investors rely heavily on financial advisors: survey
By Paul Wilson
ProWEB Wire (Industry News)
While a large number of high-net-worth investors rely heavily on their own research and analysis when it comes to their financial plans, a similar number turn to a trusted financial advisor for advice, according to a new survey from Spectrem Group.
When asked who they turn to when making investment decisions, 41 percent of millionaire investors said they relied primarily on themselves, while 40 percent said they sought advice from their financial advisor and only 1 percent turned to family and friends, according to the survey.
In comparison, just 34 percent of investors with less than $100,000 in assets said they conduct their own investment research, while 31 percent said they relied primarily on an investment advisor and 13 percent sought advice from family and friends.
“Wealthy investors want to at least feel that they are involved in decisions,” said Tom Wynn, director of affluent research at Spectrem Group. “So even if you’re actually making the decision about their portfolios, make them a part of it and explain why you are doing something. ‘Trust me’ is gone. Transparency and participation are in. All the scandals by fund managers is part of it, but also a lot of wealthy investors were burned by the financial crisis and feel that even if their advisors didn’t do a bad job, they could have done better.”
A growing number of millionaires are turning their attention to international investments and global issues. Approximately two-thirds of those surveyed said they are “likely” or “more likely” to invest internationally, compared to 40 percent of those with less than $100,000 who plan to invest internationally, the survey said.