Ultra High Net Worth professionals make up about 20% of UHNW households (defined as have a net worth, not including the value of their primary residence, of at least $5,000,000), per Spectrem Group research. These highly educated investors are experts in their field and their investment-related attitudes and behaviors differ significantly from their affluent brethren, as do their expectations of and relationships with their advisors..

Over the past year, $489 billion was eligible for rollover and $245 billion was actually moved into IRAs.
Spectrem Group estimates that the amounts eligible for and transferred to IRA rollover accounts will increase at 10-12% annually over the next five years.

While retirement plan sponsors increase the investment choices available to employees, plan participants continue to use only a fraction of the options available to them.

Affluent women are generally satisfied with their financial advisors, even though they believe those advisors have some room for improvement.

Individuals who have more than $100,000 invested in employer-sponsored retirement plans control the majority of plan assets eligible for rollover.

Account statements that are informative and easy to read may be an effective means for financial services companies to strengthen their relationships with affluent individuals who make their own investment decisions.

Retirement plan participants apparently are keeping the materials they receive at the time of enrollment.

More than half of affluent men and an even larger percentage of women regard their financial advisors as more than just a source of information about investments.

Financial services providers and advisors may be able to increase their book of business simply by being willing to educate their high net worth clients.

Spectrem Group research shows older individuals comprise an increasingly larger share of those who participate in defined-contribution plans.

Spectrem Group research shows small plan sponsors, defined as those with less than $10 million in assets lack the tools and information necessary to protect themselves from potential liabilities.

Affluent individuals who use financial advisors want more than just informative and easy-to-read statements. They also want access to company research reports and analysis of economic and market news.

Retirement participants of all ages are investing more of their retirement plan money in equities, reflecting the long-term horizon of retirement savings. If balanced and asset allocation as well as sector investments are included, it is estimated this allocation increases to two-thirds of an account holders balance.

Separate surveys of plan sponsors and participants conducted by Spectrem Group reveal a disconnect between plan sponsors and participants, regarding whether some form of income option should be included in retirement plans.

Retirement participants of all ages are investing more of their retirement plan money in equities, reflecting the long-term horizon of retirement savings. If balanced and asset allocation as well as sector investments are included, it is estimated this allocation increases to two-thirds of an account holders balance.

It certainly helps to generate superior returns on investments, but financial advisors can impress their affluent clients even more by responding to calls promptly and providing an alternate contact person when they are not available. With affluent clients, responsiveness is directly related to perceptions of quality service and competence

Those who are forced to evaluate the rollover options of their employer-provided retirement plans are most likely to turn to a financial advisor for help in making a decision.

Small plan sponsors are following the lead of their larger brethren and beginning to consider the purchase of all of their employee benefit services from a single provider as a way to reduce costs.

When shopping for a new retirement plan provider, plan sponsors take a close look at providers’ ability to deliver a host of administrative services online.

When it comes time to choose a primary financial advisor, young investors tend to look beyond the full-service brokers favored by their parents and grandparents.

The desire for additional advice and assistance among plan participants appears closely related to age (i.e., the experience the individual has in managing their own investments) and household income. 

The Myth:
Affluent investors want to work with large, well established financial service firms.
The Reality:
The notion that bigger is better does not necessarily apply to Affluent investors regarding the financial firms they work with.