Cerulli Study Finds 63% Of Investors Willing To Pay For Advice



The percentage of Americans willing to pay for financial advice has increased  to 63% in 2022 from just 38% in 2009, according to a new Cerulli report.


The survey respondents consisted of households with more than $250,000 in investible assets and households with at least $125,000 in income that are headed by adults younger than 45, according to the report. The report did not disclose the number of households surveyed in each group.


In the same period, the interest in comprehensive written financial plans has also grown, to 54% last year from 38% in 2009, the report, entitled “The Evolving Future of Wealth Management,” found.


“Investors seek advisors with a service set aligned with their financial goals,” wrote Scott Smith, Morningstar director, in the report. “Looking forward, we believe demand will be centered around personalized comprehensive advice delivered through trusted advisors.”


And it appears financial advisors are hitting the right notes with their clients as they provide these sought-after services—81% of surveyed clients say they are satisfied with their advisor, despite all the market volatility that could be expected to cause challenges to client retention.


The research for the report was based on the MarketCast Global Wealth Monitor Survey, Cerulli said. More than 11,000 households participate through online surveys throughout the year.


The report was prepared by Cerulli Associates in Boston in collaboration with the Securities Industry and Financial Markets Association, based in Washington, D.C.


When evaluating the investor universe, Cerulli divides investors into four categories: those who are reliant on an advisor, those who seek advice from time to time, those who are self-directed and those who are passive buy-and-hold investors.


Despite the always-growing availability of informational sources and tools to support D.I.Y. investors, the demand for an advisor relationship continues to increase, with a real bifurcation of the market in recent years, the report found. Back in 2009, self-directed investors accounted for 41% of the market, a greater percentage than advised investors, who represented 35% of the market.


But in 2015, that trend started to reverse, and by last year advised investors represented 47% of the market, while just 27% was self-directed.



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