According to recent research from Cerulli and SIFMA, by measures of trustworthiness, dedicated relationships, and personalized advice, advisors are meeting investor standards. And this applies not only to high-net-worth clients—those of more moderate wealth also want to rely on a person-to-person advisory relationship.
According to the research, 33 million U.S. households with between $100,000 and $1,000,000 in investable assets—the mass affluent—currently hold $6.5 trillion with securities firms. The average relationship size is $135,000. In total, these investors account for more than 26% of the U.S. population and control over $11 trillion, or nearly 23% of investable assets in the U.S.
More than three-quarters (77%) of these investors believe their advisor is worth the cost. Only 4% indicate the advisor is not worth the cost. And asked if they would recommend their advisors, some 75% of the mass affluent said they certainly would.