In addition to minimizing asset losses, advisors influenced their clients’ psychological well-being. Almost 9 in 10 millionaires (85%) stated that contact with their financial advisors helped them feel more comfortable that they could cope with the crisis. In addition, millionaires who work with advisors are less likely to worry about managing their investments than are millionaires without advisors (50% vs. 55%). Similarly, millionaires with advisors are less likely to worry about tax planning than are millionaires without advisors (28% vs. 32%). Millionaires with advisors also benefit from a perception of a simpler financial life: fewer than half (49%) of millionaires with advisors seek to simplify their financial life, compared with 54% of millionaires without advisors. Overall, millionaires who work with advisors tend to share a more optimistic outlook (62%) than their peers who do not have financial advisors (56%).
The FINRA Investor Education Foundation recently released survey results that measure the financial capabilities of American adults and reveal in detail how Americans save, borrow and plan for their financial future. The National Survey, one of three surveys that collectively make up the National Financial Capability Study, is the first of its kind in the United States.
- nearly half of survey respondents are facing difficulties in covering monthly expenses and paying bills;
- the majority of Americans do not have a “rainy day” fund for unanticipated financial emergencies and are not adequately preparing for their children’s college education and their own retirement; and
- while many adults believe they are adept with dealing with day-to-day financial matters, they nevertheless engage in financial behaviors that generate fees and expenses.
The 2009 Fidelity Millionaire Outlook survey reveals three critical roles that advisors played during the recent financial crisis. According to their clients, advisors acted as: Wealth Guardians (role #1). Just over three quarters (76%) of millionaires credit their advisors with limiting their asset losses during the financial crisis. A look at the asset levels of millionaires who work with advisors and those who don’t supports this. While the market downturn led to losses across the board, millionaires who do not work with advisors lost $630,000 on average, compared with $150,000 for their peers who work with advisors Source: Fidelity Millionaire Outlook, February 2009
The latest research in the Fidelity Millionaire OutlookSM Series reveals that most high net worth clients credited their advisors with helping them weather the most recent market downturn. For the full report see: https://fiiscontent.fidelity.com/904499.PDF
About the survey.
Fidelity Investments (Fidelity) conducts annual surveys of U.S. households with investable assets of at least $1 million, excluding workplace retirement accounts and any real estate holdings. The research analyzes millionaires’ attitudes and behaviors on a variety of investing topics, including financial concerns, economic outlook, and use of financial advisors.*
*The most recent survey was conducted online in February 2009 by Richard Day Research and received completed responses from 1,012 financial decision makers in U.S. millionaire households. The data are representative of all U.S. millionaire households, with a margin of error of +/- 3%. The survey did not identify Fidelity as the sponsor. Richard Day Research is an independent third-party research firm not affiliated with Fidelity Investments.