Data & Research June 13, 2007
Some Wealthiest Professionals Rely on Advisers
About one-fifth (21%) Ultra High Net Worth (UHNW) professionals consider themselves 'adviser dependent.'
Reported by Alison Cooke
The nation’s wealthiest doctors, lawyers and other professionals are nearly twice as dependent upon financial advisers as Ultra High Net Worth individuals (those with a net worth of $5 million or more, not including primary residence) in other occupations, only 12% of who consider themselves dependent, according to research by the Spectrem Group.
“For the financial services industry, there is a great opportunity to make inroads with wealthy professionals, who obviously value similar professional qualities in their advisers,” said Catherine S. McBreen, Managing Director of Spectrem Group.
Those in this income group are most likely to use full service brokers, with heavier usage on the part of other occupations (32%) than professionals (30%). Wealthy professionals are more interested than the other occupations in accountants (12% vs. 6%) and independent financial planners (9% vs. 8%).
A higher percentage (26%) of UHNW professionals use independent investment advisers as their primary financial advisers than do UHNW individuals in other occupations (11%), the new Spectrem Perspective report, “UHNW: Understanding Unique Financial Needs of Doctors, Lawyers and Other Professionals” found.
“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 advisers to handle their investment decisions than individuals in other occupations worth $5 million or more. These professionals also gravitate more toward independent sources of advice, including independent investment advisers, accountants and independent financial planners,’ McBreen said.
Those interested in purchasing “UHNW: Understanding Unique Financial Needs of Doctors, Lawyers and Other Professionals” can contact Spectrem Group at 641 W. Lake Street, Suite 402, Chicago, IL 60661, (312) 382-8284 (http://www.spectrem.com).