High Net Worth Investing Client Satisfaction Trends

In 2007, families with over $500,000 in investable were asked the question “Would you give a positive recommendation of your advisor to others?” Only 31% of families answered yes. When the question became, “Are you satisfied with your advisor?”, then the affirmative yes only trickled up to 39% (the speculated reason for the eight point difference is that some families don’t want to share their advisor with others out of fear that the advisor would reveal personal details or additional clients would monopolize his time and diminish the quality of service.)

The obvious follow-up question is this: Why, before the financial crisis, did a near supermajority of clients feel uncomfortable with the type of financial representation that they were receiving? Was it unrealistic expectations? Grass is greener syndrome? Terrible advisor selection deserving of rebuke?

Nope. It’s all about a failure to meet expectations. Among people dissatisfied with their investment management, … Read the rest of this article!