SOURCE: Spectrem Group

April 14, 2011 08:00 ET

Wealthy Women Demand Honesty, Transparency From Financial Advisors

98% Cite Honesty, Trustworthiness as Key Criteria in Selecting Their Advisors; Wary of Sales-Driven Approaches

CHICAGO, IL--(Marketwire - Apr 14, 2011) - Want to provide financial advice to wealthy women? You'd better be a straight shooter.

An overwhelming majority (98%) of women with a net worth of $100,000 to $25 million, not including primary residence (NIPR), say honesty and trustworthiness are key criteria for selecting financial advisors, according to "Wealthy Women Investors," a Spectrem eZine report released today.

Similarly, 95% of wealthy women say they seek transparency and someone who will keep them informed.

"For wealthy female investors, openness, transparency and trustworthiness are the most important qualities in selecting a financial advisor. Across the affluent, millionaire and Ultra High Net Worth wealth segments, women want to be comfortable that advisors are focusing on their specific, personal financial needs - not on product or profit. In fact, a frank, straightforward approach is more important to wealthy women than investment track record, depth of products offered, referrals, and even fees," said Catherine S. McBreen, Managing Director of Spectrem Group.

In focus groups, wealthy women were wary of advisors who seemed sales-driven or less than fully open and transparent:

  • "I feel like he is always trying to sell me the next new thing."

  • "Everyone is out for himself. He may act like he cares about me, but he really just wants to make as much money for himself as he can."

  • "I need the same amount of information that I receive from a doctor. Why is he recommending this investment? Is it best for me or for him?"

Additional insights from "Wealthy Women Investors" are available on Spectrem's newly launched Spectrem's Millionaire Corner website (www.millionairecorner.com). They include:

The Spectrem eZine "Wealthy Women Investors" is based on a quantitative Spectrem Group study of 3,024 households with a net worth of $100,000 to $25 million, not including primary residence (NIPR), conducted from September to November 2010, as well as on focus groups and one-on-one interviews conducted on an ongoing basis. The margin of error for the quantitative data is plus or minus 2.9 percentage points.

About Spectrem's Millionaire Corner
Spectrem's Millionaire Corner website (www.millionairecorner.com) is a powerful source for up-to-the-minute news and information for investors, about investors designed to fuel financial growth. It incorporates Spectrem Group research as well as outside information. In the future, the site will offer financial advisor referrals.

About Spectrem Group
Spectrem Group is a strategic consulting firm specializing in the affluent and retirement markets, integrating proprietary research with expertise in building business, marketing and M&A strategies. Its professionals have held senior management positions at leading global companies.

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