New York (Dec. 10, 2003) -- Most affluent investors said they are likely to work with a professional financial advisor during the next year, according to a survey by Chase.
Nearly half (49 percent) of affluent investors surveyed said they are extremely or very likely to work with an advisor over the next 12 months, and another 18 percent are somewhat likely to do so, according to a poll of more than 450 investors by Chase Personal Financial Services. Participants had household income of $100,000 or more, a brokerage account and $250,000 to $10 million of liquid assets.
About half (49 percent) of those surveyed describe themselves as optimistic or confident (10 percent) about the current run-up in equity markets, while 13 percent are hesitant and 5 percent are pessimistic. Investors who are optimistic or confident about the market are more likely (56 percent) than hesitant or pessimistic investors (43 percent) to say they’ll work with an advisor, Chase reported.
Of those surveyed, 52 percent currently have a financial advisor. Investors with more than $1 million in assets are more likely to have an advisor (59 percent) than investors with under $500,000 in assets (45 percent). Seventeen percent don’t have an advisor today but have used one in the past. Of these, 47 percent decided they could make better financial decisions on their own, and 42 percent said the services provided weren’t worth the fees.
For investors who have an advisor or say they’re likely to rely on one (61 percent), the most important attributes are the advisor’s ability to provide the right advice for them (cited as extremely or very important by 93 percent), being market savvy (91 percent), and the ability to structure a long-term plan (83 percent). Providing the right advice was ranked as the most important attribute by 41 percent of investors. Seventy-nine percent of those polled have a financial plan. Of those, 62 percent used an advisor to help put the plan together. Fifty-three percent intend to establish or update a plan in the next year. Of those, 65 percent will use an advisor.
In response to the rocky investment climate, affluent investors have taken a more moderate investment approach. Nearly two-thirds (63 percent) characterize their investment approach as moderate, while 14 percent are aggressive and 24 percent are conservative. Three years ago, 48 percent of investors characterized themselves as aggressive, while 44 percent were moderate and 9 percent were conservative, according to the report.
-- WebCPA staff
