For most of America’s wealthiest, one advisor isn’t enough

For most of America’s wealthiest, one advisor isn’t enough
Vast majority of wealthy individuals have a financial advisor, with two thirds saying they need more than one to manage their affairs.
AUG 23, 2024

A recent study from Bank of America Private Bank reveals a strong majority of the country’s richest individuals have a financial advisor – and most even have a team in their corner.

According to the 2024 Study of Wealthy Americans, nine in 10 rely on financial advisors, with almost all (97 percent) saying they’re satisfied or very satisfied with the relationship.

The research found those who had legacy wealth were more likely to engage an advisor from a young age, while those who had a financial head start and self-made wealthy individuals tended to seek advisors later as they build up their wealth.

Breaking down that advised cohort, Bank of America found two-thirds (67 percent) work with multiple advisors, including 71 percent of respondents aged 44 and above.

“Many wealthy people use multiple advisors to manage their investments and other financial affairs, including attorneys, accountants, financial planners and private bankers,” the report said.

Sixty-one percent of respondents to the survey said they have a financial advisor or wealth manager, making it the most common type of advisory relationship for wealthy Americans. Another 55 percent said they have an attorney, 44 percent have an accountant, and 25 percent reported working with a financial planner.

Financial advisors and wealth managers also emerged as the most valuable players on rich people’s advisory teams, as they were identified by 60 percent of survey respondents as their primary advisor.

While the findings showed high levels of satisfaction with financial advisors overall, there’s still room to improve as just 73 percent of participants in Bank of America’s polling said they were “very satisfied.”

Drilling down into the specifics, the report said around seven-tenths were very satisfied with their advisor’s communication (68 percent) and understanding of their needs, values and goals (69 percent). Meanwhile, just around three-fifths (62 percent) reported very high satisfaction when it comes to quality of investment advice and portfolio construction.

“Only 46% are highly satisfied with their financial advisor’s communication with their other advisors – another opportunity to add value, given that the majority of wealthy people use multiple advisors,” the study said.

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