Myth: Highly educated, affluent professionals (physicians, lawyers, dentists, and accountants) feel that they are also very knowledgeable about financial products and investments, and seldom seek out the advice of financial professionals.

Reality: Only 26% of affluent professionals think of themselves as very knowledgeable about financial products and investments.

A recent Spectrem Perspective™, UHNW Professionals: Understanding the Unique Financial Needs of Doctors, Lawyers and Other Professionals showed that a majority (51%) of professionals consider themselves fairly knowledgeable but with a great deal to learn. Because of this, professionals are more likely to seek out and use the services of a professional advisor. Forty-nine percent of professionals describe themselves as advisor-dependent or advisor-assisted, compared to 34% of other professional occupations. This is consistent with professional’s view that they are experts in their field but not in financial services. Because they do consider themselves experts in their field, they expect a higher level of financial expertise from their advisors.

Not surprisingly, slightly more than one-half (52%) of professionals feel that they don’t take the time necessary to manage their finances. Other occupations are more likely than professionals to be actively involved in the day-to-day management of their investments. Professionals are used to their clients and patients seeking expert advice from them and have that same attitude that “experts know best” which leads them to seek the advice of financial advisors often.

Investor Action Steps:

· You are not alone if you feel you don’t have either the time or the acumen to research and manage your finances as well as they could be managed.

· Don’t be afraid to interview and be choosy in selecting a financial advisor.

· Check with your colleagues for references.

· Expect a high level of expertise from your advisor… your colleagues do.

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