Many factors about this group have changed over the last few years. The need for advisors has shifted. While almost a quarter of Investors consider themselves to be “self-directed”, the remainder look to use advisors in various ways. The challenge is that, investors’ expectations of advisors are higher than in the past and the inability of advisors to meet these new expectations may lead to decreased loyalty in the future. Investors will be more comfortable weighing the expertise and ease of their advisor against their own ability to manage their investments.

The most predicable and perhaps the most important trend is that the Internet will play a larger role in the future of client interactions and loyalty. Firms must be ready for this change and realize that overall client satisfaction will be linked to their Internet capabilities. Affluent investors desire to know what is happening with their assets instantaneously. Eighty-two percent of individuals over the age 61 are spending time on the Internet, and about one-half of affluent investors are spending more time online regarding financial issues than a year ago. In fact, 60% of affluent investors age 50 and younger are doing more online financially, compared to 30% of those over age 61. Confident about their own ability to make investment decisions, the informed affluent will purchase products directly from product providers via the Internet, avoiding their advisor altogether.

Despite their increasing sophistication and affluence, over one-third (37%) of affluent households are concerned about running out of money during retirement. Generally speaking, younger investors are more concerned than older investors. The affordability of health care is the life issue risk that concerns the highest percentage of affluent investors. Seventy seven percent (77%) of respondents under the age of 50 were concerned compared to 65% of those 65 and over. Rarely do advisors discuss health care issues with their clients. Advisors in the future must learn to bring together all of the pieces of the financial life of the investor.As you can see, the factors influencing the attitudes of today’s investors are numerous. Their greatest desire is to understand how to protect themselves and their families from financial risk. Their challenge is in determining who to trust, where to get the appropriate information, which firm or advisor will look out for their interests, and how to hire the expertise required in a changingand volatile marketplace.

---