Fifty-five percent of Mass Affluent investors, those with a net worth of $100,000 up to $1 million, not including primary residence, are "very comfortable" with the fees they pay their financial advisors, according to our third-quarter study of the relationship between affluent investors and financial professionals. The share rises to 60 percent for Millionaires, investors with a net worth of $1 million up to $5 million, NIPR.
Investors at higher wealth levels are least inclined to view advisors’ fees as costly. Fifty-eight percent of Mass Affluent investors indicate they "find the services of a professional advisor to be very expensive." The share drops to 51 percent of Millionaires and to 49 percent of Ultra High Net Worth investors, who have a net worth of $5 million up to $25 million, NIPR. Forty-three percent of $25 Million Plus investors find advisors to be extremely expensive.
A large majority of affluent investors perceive advantages to the advisor-client relationship, and rank the top three as increased investment knowledge, access to a wider array of investment opportunities and improved returns, according to a montly poll conducted in October by Spectrem’s Millionaire Corner. Older investors also value the peace of mind that comes with working with an advisor.