Despite High Satisfaction Rates Among HNW Investors, FAs Need to Set Themselves Apart
High net worth investors are overwhelmingly satisfied with the job their financial advisors are doing — but that only makes it harder for advisors to truly stand out, according to a recent study.
Ninety-one percent of high net worth clients are somewhat or very satisfied with their financial advisor and 89% are somewhat or extremely likely to continue working with them, according to a recent survey of more than 1,000 investors with at least $500,000 in liquid assets, 578 of which reside in the U.S. and 425 in Canada, conducted for the Investments & Wealth Institute by research and consulting firm AbsoluteEngagement. But the institute claims that such high satisfaction rates don’t necessarily translate into advisors being able to set themselves apart from their competition.
To that end, the survey also polled investors on what they consider the essential traits for an advisor. Trustworthiness was ranked most important by 87% of respondents, while having high ethical standards and, separately, always acting in the clients’ best interest, were each selected by 80%, the institute says. What the organization dubs “engaged clients” also value advisors who take a personalized approach, demonstrate advanced skills, deliver exceptional service and offer meaningful guidance, according to the study.
As for what they believe they’re paying for, 90% of HNW investors say it’s for ongoing guidance about reaching their goals; 84% say it’s for help avoiding expensive financial blunders; and 81% say it’s for ongoing monitoring of their goals, the Institute says.
The top four services that HNW investors turn to advisors for are investment management, deemed most important by 38% of respondents: followed by financial planning, selected by 29%; wealth management, picked by 21%; and retirement solutions, selected by 12% of respondents, according to the survey.