Millionaires Most Prize Honesty, Transparency When Choosing an Advisor

Millionaire investors in the process of choosing a financial advisor prize above all else honesty and trustworthiness, according to a third quarter wealth level study conducted by Millionaire Corner.  These traits are most important to 96 percent of respondents, followed closely by 93 percent who said that they most consider an advisor’s track record. The same percentage put a premium on an advisor who provides transparency and keeps them in the loop on what they are doing on their behalf.

Eighty-seven percent of Millionaire investors are looking for an advisor offering a depth of products and services to meet a wide range of wealth management needs, while slightly fewer (86 percent) have an eye on whether the advisor works on commission or charges fees.

More than three-quarters (78 percent) want a selection of products from different companies, while 67 percent are looking for someone to whom they have been referred by someone they trust.

A majority (62 percent) put stock in a well-known brand or company, while 58 percent take into consideration a potential advisor’s website or online services.  Only 5 percent care if their advisor uses social media tools, which is something of a brave new world for advisors who have compliance considerations to consider in using it to market themselves.

Age is a factor in the importance investors place on some of the criteria for choosing an advisor. Younger investors, for example, are less likely to place importance on a well-known brand or company name as do older investors ages 55 and up, while baby boomers ages 55-64 are more likely to place importance on an advisor's investment track record than do their younger and older counterparts.

But our research shows that regardless of age, wealth level, occupation or advisor dependency, it is the fundamental things that apply.

"Choosing an advisor is an incredibly difficult thing for most investors," observed Kathy Dordick, Business and Strategy for Millionaire Corner. "Advisors who are upfront regarding fees and investment selection and involve their clients in the decision-making process are more likely to be viewed as honest and trustworthy, which our research has shown is of paramount importance."