Many high-net-worth investors turn to experts when they need financial advice. And while many of them trust their advisors to help them build and maintain their wealth, there are plenty of things that investors wish advisors would do differently. New research sheds some light on what wealthy individuals and investors want (and don’t want) from their financial advisors.
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1. Wealthy Investors Want Advisors to be Tech-Savvy
Technology is reshaping the way we do just about everything, including the way we manage our investments. Unfortunately, that’s something many financial advisors have yet to catch on to.
According to a PricewaterhouseCoopers (PwC) report, 25% of advisors have no virtual connection to their clients beyond email. For investors who value digital capabilities, an advisor’s reluctance to embrace technology could lead the investor to look elsewhere for financial advice.
2. They Want Guidance Beyond Their Investments
Investing wisely is just one part of building wealth. PwC’s report suggests that high net worth investors are increasingly relying on financial professionals to offer advice on issues like estate planning, taxation, insurance, healthcare and even basics like spending and budgeting.
In essence, wealthy investors are looking for financial guidance that’s more comprehensive than what they’ve received in the past. There’s a trade-off, however, since getting more services may mean paying additional fees.
3. They Don’t Just Want a Sales Pitch
Financial advisors vary in the way they structure their fees and for some, their livelihood is based on their ability to sell certain investment products to their clients. Constantly being on the receiving end of a sales pitch, however, is somewhat of a turnoff for many high net worth investors.
Even if certain financial products are a good fit for an individual’s portfolio, investors don’t want to feel like their advisors are just trying to make money off them.
4. They Say “No” to a Cookie-Cutter Approach
Investing is not one-size-fits-all, especially for investors who have already accumulated a significant amount of wealth. According to PwC, investors are more interested in receiving personalized advice. They want solutions that address their specific financial needs.
The PwC report also shows that investors want advice that’s easily accessible. They don’t want to have to track down their advisors if they’re panicking because the market’s taken a dip.
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Trust May Be the Most Important Piece of the Puzzle
Beyond excellent service and tailored advice, investors want to know that they can trust the person who’s managing their investments to make the right decision. That’s why it’s so important for investors to ensure that the person they’re working with is a fiduciary.
Financial advisors who adhere to a fiduciary standard have an ethical obligation to act in the best interest of their clients. Before you hire a financial advisor to manage your wealth, it’s a good idea to ask about his or her fiduciary status. That way, you can sleep easier at night knowing that your assets are in responsible hands.
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