How Do You Find a Financial Advisor?

Social media and mobile technologies are changing the way investors find a financial advisor, according to Millionaire Corner research that tracks a shift away from personal referrals and toward online sources.

Seventy percent of Millionaires surveyed in 2010 indicated they initially find a financial advisor through a referral from a friend or family member, according to our research. By 2012, that share had dropped to 46 percent.  What’s taking the place of personal referrals?

The Internet, social media and mobile technologies are rapidly changing the ways investors manage their finances and find a financial advisor, according to our research. A study conducted in the second quarter of 2012 shows that 69 percent of Millionaires – investors with a net worth of $1 million to $5 million not including their primary residence – use their personal computers and tablets to access their accounts. Sixty percent use the technologies to research investments, 56 percent to pay bills and 39 percent for financial planning and goal setting.

Close to two-in-five access the Internet via computer or tablet to evaluate financial service firms and 37 percent, to correspond with their financial advisor.

The means by which Millionaires find a financial advisor may be changing, but Millionaire Corner research finds that certain attitudes and preferences remain unchanged.  Affluent investors may be going online, but they are still looking for the same qualities in a financial professional. Millionaires continue to rank honesty and trustworthiness as the top qualities they seek in an advisor. They also want to find a financial advisor who is transparent and keeps them informed of what they are doing.

Communication is key to maintaining the advisor-client relationship, according to our research, which indicates that Millionaires are likely to leave an advisor who does not proactively reach out or promptly return phone calls and emails.