Affluent Investors Relying More on Advisors: Cerulli

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“Affluent investors are passionate about making sure that their advisors are offering solutions customized to their needs and goals,” Scott Smith, director of advice relationships at Cerulli, said in a statement. “To align themselves with these priorities, advisors must dedicate themselves to understanding the circumstances, preferences, and goals of each client household at least as much as they do to researching the product solutions they offer to reach them.”

For a plurality of investor households that do not work with a financial advisor, the research showed that 46% are concerned about lack of transparency around cost and method of payment, while 34% are uncertain whether the advisor is recommending the best products for their needs.

Even if costs were to be more transparent, 28% of those without an advisor still say that advisors are just too expensive. And regardless of whether an advisor is using the best possible products, 20% of investors are unsure whether they can trust an advisor at all.

Cerulli recommends that advisor practices prioritize ongoing discovery and relationship building as key elements of their client experience.

“Increasing portfolio values and progress toward goals are certainly valuable metrics, but they must be accompanied by the desire to consistently investigate the evolution of clients’ dreams, concerns and fears,” Smith said.

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