America's wealthiest investors plan to increase their use of independent financial planners in 2014, according to a new study issued Wednesday by
Twenty-six percent of ultra-high net worth (UHNW) investors are planning to increase usage of independent advisors compared to 17% in 2012, according to Spectrem’s fourth quarter wealth segmentation report. Of the UHNW investors surveyed, 74% have a net worth between
Other types of wealthy investors described as millionaires and mass affluent are also considering working with independent advisors.
Of the millionaires polled, 21% answered that an independent financial planner was the type of advisor they plan to start or increase usage of in 2014, a 5% increase from a year ago. Among mass affluent investors surveyed, who have wealth levels between
"We're seeing a continual trend toward investors feeling like they want more objectivity," says Walper referring to fee-only advisors. "That is why we are seeing an increase in use of this type of advisor."
While successful Americans are looking more toward financial planners in 2014, less than a quarter (23%) of mass affluent investors indicate that they regularly use an advisor with 45% saying they make all of their own investment decisions. However, nearly nine in 10 UHNW investors (89%) and 70% of millionaires acknowledged regularly working with advisors.
"That is a group that has a little bit more knowledge of where to find advisors and advisors also try to find them," says Walper on why investors with
Other key findings from the Spectrem report include:
|Copyright:||(c) 2014 Financial Planning. All rights Reserved.|
|Source:||Source Media, Inc.|