A new study from Spectrem Group finds that more than half of high-net-worth investors have switched financial advisors within their lifetime. Plus, close to a quarter (23%) of affluent investors say they have changed advisors within the past five years, and 11% of Millennials have fired their advisor in the past 12 months.
Why the moves? Wealthy investors cite a lack of proactive ideas, and less wealthy investors point to the absence of frequent contact. “Younger investors are also more likely to believe an advisor should provide information via mobile technology and understand social media,” Spectrem explained in a statement.
For investors who like to be involved in their portfolios and enjoy investing, the likelihood of switching advisors is higher than for those who have less time or interest in investing. About 90% of wealthy investors review their accounts on a regular basis, and almost three-quarters (72%) keep up with financial and economic news.
“This research offers key insights to providers about attracting and keeping investors,” said Spectrem Group President George H. Walper, Jr. “It underscores that investors are looking for proactive advisors who stay in contact with them in addition to offering new investment ideas and forward thinking.”
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