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February 20, 2013updated 04 Apr 2017 3:27pm

Most Affluent Investors Are Comfortable with Advisor Fees

Most affluent investors are comfortable with the fees they pay their financial advisors, according to Spectrem Group research that finds comfort with advisory fees increases with wealth.

By Verdict Staff

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.

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