According to a new study from Schwab, seven in 10 affluent investors feel financial markets are too complicated to navigate without an advisor.
The report revealed that one-third of the study participants said their desire for investment advice has increased in the past year, and three-quarters said they are most confident making investment decisions when they collaborate with their investment professional; just one-third said they feel that same level of confidence when making investment decisions by themselves.
Majority of the respondents (72%) said they trust individuals in the financial services industry, while 42% said financial services companies and 10% said they trust no one.
An overwhelming majority (85%) said they want transparency around how their advisor is compensated for the advice they are providing.
Bernie Clark, head of Schwab Advisor Services, said: "Regardless of how much and how deep the advice, today’s affluent investors have one thing in common: they want a trusted expert on their side looking at the big picture on their behalf."
The study found that very few, 11%, affluent investors see themselves as advanced investors; 68% labelled themselves as an intermediate and 21% described themselves having beginner skills.
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As of 31 May 2013, Schwab’s suite of advice offerings for retail investors has grown to US$139 billion assets under management from US$114 billion the prior year.