Millionaires Increasingly Dissatisfied with Wealth Managers, Prioritize Wellness Services
A new survey reveals a growing disconnect between high-net-worth individuals and their traditional financial advisors, with millionaires expressing greater satisfaction with personal wellness and family care professionals.
Only one-third of millionaires currently utilize a wealth advisor for financial planning, and a significant 20% are considering terminating their services due to concerns over high costs and perceived poor service. According to the study, 26% of current users are contemplating a switch, while another 18% may discontinue using an advisor altogether. This shift highlights a potential disruption in the financial services industry as clients re-evaluate the value they receive. The research, conducted by Long Angle, surveyed 114 individuals with a net worth of at least $2 million, the majority holding between $5 million and $25 million.
In stark contrast, millionaires reported high levels of satisfaction with services focused on personal well-being, such as personal trainers and therapists. Personal trainers received an average satisfaction score of 9.3 out of 10, the highest in the survey. Investment-visa advisors and personal sports coaches also scored highly. “Improving your balance sheet or bank account doesn’t deliver the same emotional value as improving your health and family life,” explained Chris Bendtsen, market intelligence lead at Long Angle. Spending on children’s services is also substantial, with respondents averaging $53,558 annually on nannies, $30,000 on private school, and $20,000 on daycare. This trend reflects a broader societal emphasis on holistic well-being, even among the affluent – a concept explored further by the CNBC Select guide to financial wellness.
The dissatisfaction with financial services stems largely from cost, with the median annual spending on wealth advisors at $10,000, and a perceived lack of personalized service. Many clients find asset-based fees to be misaligned with performance, driving a move towards flat-fee structures. Accountants and estate lawyers also received lower satisfaction scores, with complaints centering on slow response times and a lack of proactive, strategic advice. This dissatisfaction could lead to increased demand for more transparent and client-focused financial planning, as discussed in recent reports on financial advisor selection from Investopedia.
Officials at Long Angle indicated they will continue to monitor these trends to understand the evolving needs of high-net-worth individuals and the implications for the financial services sector.
