Myth vs. Reality

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.

Affluent investors ($500K+ investable assets) differed in their preferences, depending on their age and occupation.

Large National Company
When asked if they prefer a large national company for their financial needs rather than a small local one, 55% indicated they did. This percentage is uniform across the different wealth levels ($500K-$1MM, $1MM-2.9MM and $3MM+ investable assets).

Strong Brand Recognition
Fifty four percent of Affluent investors indicate they prefer a financial provider with strong brand recognition with again some significant differences based upon age. Once again, those who are older prefer financial providers with strong brand recognition to a much greater degree than do those who are younger. Senior Corporate Executives are also more attuned to brand than are Business Owners.

Nearby Office
How important is it to have an office nearby? For older investors it is much more important, while younger investors (no doubt more comfortable with long distance communications such as the Internet) do not feel it is as important. Senior Corporate Executives want to work with the best firms, even if they don't have an office nearby, to a much greater degree than do Business Owners. Overall, 58% indicate they prefer to work with the best firms in the industry, even if they don't have an office nearby.

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