Personal service from financial advisors sits higher on the list of priorities for high net worth Millennials than the long- or short-term performance of the investments advisors get them into, a Spectrem Group study reports.
Returning phone calls and keeping constant contact on important issues are among the key factors that would lead a Millennial with a net worth of more than US$1 million to change their financial advisor. More than half (54%) of Millennials said timely returned phone calls mattered, while 49% said proactive contact on investment concerns was a key factor. Other popular choices for reasons to change advisors were not being provided with good ideas and advice and not having their emails returned promptly (both 46%).
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A slightly less compelling reason for high net worth Millennials to change their financial advisor is long-term (over one year) losses to their portfolio (44$). Less than one-fourth (21%) are concerned enough about short-term losses to their portfolio to shed their financial advisor.
Almost half of high net worth Millennials surveyed identify themselves as Self-Directed investors, meaning they make all of their own investment decisions with benefit of a professional financial advisor. Not surprisingly, they express more of an enthusiasm for investing and a healthy regard for their financial acumen. Nearly six-in-ten (59%) of high net worth Millennials said they enjoy investing and that it is something they do want to give up. In comparison, 49% of Baby Boomers said they enjoy investing.
Further, 58% of high net worth Millennials said they like to be actively involved in the day-to-day management of their investments, compared with 55% of Gen Xers, 51% of Baby Boomers and 55% of seniors.
Consequently, high net worth Millennials are the most optimistic about their financial futures, no doubt because they feel they have more of their work and investment years ahead of them. Nearly seven-in-ten (69%) said they expect their financial situation to be stronger one year from now. In comparison, 58% of Baby Boomers and 57% of seniors are as optimistic.
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By GlobalData
