US UHNW Professionals Consider Themselves Advisor Dependent

Chris Owen

14 June 2007

A US study found that 21 per cent of ultra high net worth professionals – those with a net worth of $5 million or more, not including primary residence – consider themselves "advisor dependent”. This compares with just 12 per cent of other occupations in the same wealth category, according to a new Spectrem Perspective report. The report, "UHNW: Understanding Unique Financial Needs of Doctors, Lawyers and Other Professionals”, also found that a far higher percentage of UHNW professionals use independent investment advisors as their primary financial advisors compared to UHNW individuals in other occupations . "Professionals clearly place a high value on education and expertise, so it's logical that the wealthiest doctors, lawyers, accountants and dentists would rely more heavily upon financial advisors to handle their investment decisions, than individuals in other occupations worth $5 million or more," said Spectrem Group managing director Catherine McBreen. The most popular category of primary advisor for both Ultra High Net Worth categories is full service brokers, with heavier usage on the part of other occupations than professionals . Wealthy professionals are more interested in using accountants and independent financial planners than the other occupations, which registered 6 per cent and 8 per cent for these categories respectively. “These professionals also gravitate more toward independent sources of advice, including independent investment advisors, accountants and independent financial planners. For the financial services industry, there is a great opportunity to make inroads with wealthy professionals, who obviously value similar professional qualities in their advisors,” said Ms McBreen. The Spectrem Perspective report is based on a late 2006 survey of 523 Ultra High Net Worth households. The Chicago-based Spectrem Group is a strategic consulting firm specialising in the affluent and retirement markets.