Affluent Investors Look to Banks, Mutual Fund Companies to Meet Their Needs

In what may be a case of a rising tide lifting all boats, Millionaire investors are making significantly more use of financial companies and institutions to meet their needs as the economy has struggled to recover, according to a fourth financial quarter study of affluent investors conducted by Millionaire Corner.

Banks (65 percent) and mutual fund companies (58 percent) are cited by Millionaires as the companies most likely to meet their needs. This is up from 36 percent and 35 percent, respectively, in 2009, the depths of the market turmoil.

Fifty-seven percent of Millionaires cited law firms as most likely to fulfill their needs (up from 33 percent three years ago), followed by insurance companies (50 percent, up from 28 percent), accounting firms (48 percent, up from 31 percent), and discount/online brokerage firms (47 percent, up from 30 percent). Not surprisingly self-directed Millionaire investors who do not consult with a professional are the most likely (60 percent) to rely on this type of company to fulfill their needs.

Age does not seem to be a significant factor in Millionaire perception of these companies, although seniors ages 65 and up were most likely to cite banks (65 percent), law firms (59 percent) and mutual fund companies (58 percent) as the companies likely to fulfill their needs.

Mass Affluent investors with a net worth between $100,000 and $1 million (not including primary residence) are slightly more keen on banks (67 percent) to fulfill their needs, followed by insurance companies (57 percent) and mutual fund companies and law firms (50 percent each).

Fidelity, Vanguard, and Wells Fargo are the three companies cited most by Millionaires and Mass Affluent investors as those they consider likely to meet their needs.