Financial advisers not as popular with millionaires as you'd think

About half of wealthy clients wouldn't recommend their planner, while 20% are considering firing them

Aug 4, 2016 @ 5:00 am

By Liz Skinner

Millionaires are the bread-and-butter clients of financial advisers, but planners may not be doing enough to keep this important clan content, a new Fidelity survey suggests.

About 45% of millionaires would not recommend their financial adviser to friends or family members, according to a Fidelity Investments' survey of 1,287 affluent investors.

One in five said they are considering giving their adviser the boot.

“I think advisers should not feel overconfident just because their clients aren't telling them they are dissatisfied,” said Bob Oros, head of the registered investment advisor segment at Fidelity Clearing & Custody Solutions.

(More: Look for these traits in millennials to find your next millionaire clients)

With so many discontented millionaire investors out there, advisers should be regularly asking their clients for feedback and communicating with them on the client's terms, he said.

“Assuming everything is OK makes an adviser vulnerable,” Mr. Oros said.

Advisers should create a client experience that leads to a deep connection between them. The client should look forward to sitting down with their adviser or talking with them on the phone.

(More: Advisers need to stay on top of tax game as IRS eyes audits for millionaires)

Regular and varied interactions with clients over the year can help an adviser build those friendship bonds, the way someone might talk on the phone for 20 minutes with a friend one day and engage in a two-minute text exchange with them a couple months later, he said.

Advisers also score best with millionaire investors when they have created a full financial plan for them that is focused on achieving the client's personal goals, the survey data showed.

Having technology that can illustrate clients' progress toward attaining their goals also can help, according to the survey released Thursday.


What do you think?

View comments

Recommended for you

Featured video


What is causing the fever for RIA deals?

Deputy editor Bob Hordt and senior columnist Jeff Benjamin discuss factors adding fuel to the M&A fire in the independent advice space.

Latest news & opinion

Merger mania: Why consolidation in the RIA space is about to explode

The pace is expected to pick up as big firms seek to get even bigger and older advisers look to cash out.

Voya Financial Advisors exposes more sensitive adviser information on its website

List of top advisers at the firm comes after Social Security numbers were put at risk.

Securities America hit with lawsuit seeking $18 million in damages

Firm is dealing with the fallout from a rogue broker it fired a year ago.

Brian Block continues his legal fight to stay out of prison

A judge denied Mr. Block's motion for a new trial, but he wants another day in court.

10 social media stars you're not following yet, but should be

Some of the great people using social media to discuss wealth management and financial advice who might not be on your radar.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print