What services do investors value most from advisors?

While every client may need different types of services and guidance based on their specific situation and individual preferences, a new report from Morningstar offers a useful guide on what advisors need to do to deliver the most value to investors.

Drawing from multiple studies that Morningstar has done over the years, the report noted that when asked to rank some common advisor attributes, investors agreed an advisor who helps them reach financial goals was most important.

However, that was followed closely by “maximizing returns,” which Morningstar said “could be a sign investors continue to see advisors as a glorified get-rich-quick scheme” who are only worth their salt as far as their stock-picking prowess goes.

And while investors often make unsound financial decisions based on their own cognitive biases, behavioral coaching, teaching financial concepts, and other similar activities ranked low on the list of importance for investors.

“Given research shows behavioral coaching is the single most impactful service advisors offer, these findings indicate the need for advisors to emphasize this value to clients who might otherwise not appreciate it,” the report said.

The report also highlighted the results from another survey, which asked investors how much they would be willing to pay an advisor to do specific tasks for them. Consistent with the ranking of advisor attributes, investors said they’d be willing to pay the most for help on brainstorming and determining their financial goals, at a rate of $102 per hour.

“[I]nvestors don’t just want help reaching their goals; they also want an advisor who helps them discover and identify their deeper investing goals – something that can only be achieved through ongoing discussions and trust,” the report said, underscoring soft skills as a must-have for advisors.

Investors were also willing to pay top dollar for advisors to review their accounts and financial behavior to provide personalized recommendations ($100 per hour) and evaluating research on investment options ($99 per hour).

“It isn’t just an expectation of returns, expertise, and goal attainment [that investors want],” Morningstar said. “Investors also value support to help define their goals and personalized support to help them get there.”