One third of affluent investors forego financial planners

A survey has indicated over one third of high profile investors flourish without having to use a financial planner to manage their investments.

The Advisor 2017 report said 36% of emerging HNW, and 37% of HNW and ultra-HNW clients do not use a planner.

The report defined emerging HNW individuals as those with over $500,000, but less than $1m in liquid assets.

It also highlighted that retirement was no longer the key priority for investors.

• Only 28% of respondents said saving for retirement will be their main focus. Protecting assets and the cost of healthcare ranked higher at 33% and 30%.
• Only 39% of advisors identified saving for retirement as clients’ main focus.

The research showed three main concerns for investors were protecting assets, the cost of healthcare and taxes.

The data also indicated that financial planners are prioritising breaking into the emerging HNW market.

While more than half the respondents said they prefer to manage their own assets, the research identified the three main incentives for emerging HNW investors to use planners.

The factors are:

• The advisor’s level of experience
• Fee-based fiduciary standards
• A personalised holistic approach

The report surveyed 779 advisors and 817 investors.

It was conducted on behalf of Jefferson National, the advisory solutions business of Nationwide.

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