Top 10 financial advice firms ranked by investor satisfaction in 2023
Investors’ happiness with their financial advisors took a hit last year along with the stock market, according to J.D. Power's 2023 U.S. Full-Service Investor Satisfaction Study.
The survey, now in its 21st year, showed that on average, investors’ satisfaction with their advisors fell to 717 from 744 in the 2022 survey. Satisfaction with advisors tends to be correlated over time with stock market performance, J.D. Power noted in a statement.
The survey also showed that from clients’ perspective, just 11% of advisors are delivering comprehensive advice. Forty-two percent of investors surveyed said their advisors were providing transactional advice, while 47% said they were getting goals-based advice. Moreover, only 57% of advisory clients say they have a financial plan, and even among those clients with plans, 32% say they don’t think their advisor’s recommendations are in their best interest.
Dissatisfaction may lead to defections, and the survey suggests younger clients are most likely to exit, with 27% of millennial and Gen Z investors saying they “definitely will” or “probably will” switch firms in the next 12 months.
The rankings are based on a survey of more than 6,000 investors who work with advisors, conducted from October through January, that asked about seven factors: trust, people, products and services, value for fees, ability to manage wealth, problem resolution and digital channels.
Click through to see the 10 financial advice firms that ranked highest in this year’s survey.