Advisors looking to serve the high-net-worth and the ultra-high-net-worth need to be in tune with their financial goals, which change as they grow their wealth.
That’s among the findings of a special report from the fourth annual Advisor Authority Study commissioned by Nationwide Advisory Solutions, formerly Jefferson National, which also says that while both groups seek to have a financial advisor to feel more confident in their financial future (HNW 39%, UHNW 38%), objectives evolve as the former grows sufficient wealth to become the latter.
In fact, while the HNW look for advisors to focus on financial planning (15%), because they lack confidence in managing their own assets (11%) and don’t have time to do it themselves (11%), the UHNW are more concerned with leaving a financial legacy (12%) and need assistance in managing their taxes (9%).
Both groups of affluent investors look for criteria in common when choosing a financial advisor. Advisor experience is a big one (50% HNW and 38% UHNW), followed by personalized advice for a holistic financial picture (31% HNW and 20% UHNW) and a fiduciary standard that puts clients’ best interest first (29% HNW and 24% UHNW).