An SEI survey of multi-millionaires revealed that, although the wealthy still put their trust in advisors, they tend not to trust just one. This is not news. The Merrill Lynch Capgemini World Wealth
The survey highlights a key way to differentiate your practice: acting as chief advisor to the client’s wealth advisory team.
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This is not news. As far back as 2005, the Merrill Lynch Capgemini World Wealth Report noted that the wealthy want a single point of contact to manage their multiple advisory teams and that the average client with as little as $5 million in assets had a minimum of three advisors.
In terms of comfort in asking advice, the wealthy identified financial advisors at 39% and attorneys at 22%.
Segmenting respondents, 53% of retirees had the greatest confidence in advisors, 48% of 50 – 59 year olds, and 46% of investors above age 60.
Most investors under age 50 feel they need three times their current net worth to feel financially secure.
Average asset level of respondents was $11.8 million. Respondents were primarily retirees, corporate executives, and business owners.
The survey reveals another important contrast to accepted belief: that even the wealthiest want to continue to accumulate assets as they dually focus on preserving the wealth they have.
The most effective way to become a client’s chief advisor is to conduct robust, in-depth, face-to-face discovery. This may take more than one meeting.
Only by discovering the most critical issues for clients—which often lie way under the normal advisor-client conversation—can investment strategies be appropriately aligned
with the client’s goals.
If you don’t wish to have such deep conversations with your clients or if you need to develop these skills, it’s a good idea to bring in an external resource to either perform this part of your process for you or to help you develop your skills.