SOURCE: Spectrem Group

October 17, 2013 08:00 ET

Happy, but Not Loyal: Younger, Less Wealthy Investors Content With Advisors, but Quicker to Leave Them

CHICAGO, IL--(Marketwired - Oct 17, 2013) - For the first time in years, investors at all wealth levels are reporting an increase in satisfaction with their financial advisors, according to Spectrem's third quarter wealth segmentation report, Relationships With Advisors. But younger and less wealthy investors are the least content, and the least loyal.

"You can expect investor satisfaction to be higher when the markets are doing well, and with the economy in a state of recovery,'' said Spectrem Group President George H. Walper Jr. "But building loyalty with clients is the key to a long-term relationship."

Spectrem's report shows advisor satisfaction and loyalty is highest among the wealthiest investors. Younger and less wealthy investors, on the other hand, are the least likely to stay with an advisor if he or she changed firms.

Spectrem's Wealth Segmentation Series looks at investors from three wealth segments: Mass Affluent (net worth of $100,000 to $1 million, Not Including Primary Residence), Millionaire ($1 million to $5 million, NIPR), and Ultra High Net Worth ($5 million to $25 million, NIPR).

Significant findings in the report include:

  • Investors who rely on advisors want more information and more frequent communication from their advisors. Investors also have a variety of ways they wish to receive communication (telephone, email, social media) and wants advisors to be flexible in their approach.
  • Millionaires are working more with advisors than in the past, but want them to branch out into estate or long-term health care planning.
  • UHNW investors are looking for better information from their advisors through the presentation of high quality content in newsletters or in blogs.
  • Almost three quarters of Mass Affluent and Millionaires use an advisor; even more for UHNW

Additional insights from Spectrem's latest report include:

About Spectrem Group
Spectrem Group (www.spectrem.com) strategically analyzes its ongoing primary research with investors to assist financial providers and advisors in understanding the Voice of the Investor.

About Spectrem's MillionaireCorner.com
Spectrem's Millionaire Corner website (www.millionairecorner.com) provides information for investors about investors. With its Find an Advisor service, investors are able to search for financial and investment advisors to assist in growing their wealth.

Charts and executive summary available upon request.