Average # of FAs each investor has
I am doing a marketing piece and wanted to quote the average number of FAs an investor has. Does anyone know the approximate number and from where the statistic comes from? I think it was originally printed last year in an issue ofBarron's.
Jones has always said 2.5. No data to back that up. I just want to make sure I'm not the .5 part of the mix.
Over 90% of mine have one advisor. Until you have that, you really don't have a relationship of trust.
Clients may have more than one broker, but typically only one advisor. The reason is they are searching for an advisor and will keep adding brokers until they find one.
According to an article found in Research Magazine Pg. 61 of The Private Client P. Abrams [
Fourth, while these affluent individuals may work with plenty of financial advisors
(most have three to five), very few of them have the kind of trusted longterm
relationship with a single advisor that our research consistently tells us
they are truly looking for. In other words, they are not under-served because they
have no advisors, but because they have too many.]
I always find it funny when someone says they handle all the money. Unless you are doing the tax returns over an extended period of time, you have no clue. I had a client that I did the taxes of and would have bet every dollar I had that I had every investment dollar of theirs. Woops - they had an IRA rollover with a guy I'd never heard of before and found a valuation statement in their tax documents. I don't blame them at all.
Wow...I must be blonde this weekend! I read that as "Average number of FAs the average person has over their lifetime," not how many all at once!
I agree whole-heartedly with Indy in that regard; I'm still a small producer, but I won't work with anything less than "the whole ball of wax." I don't necessarily care how big "the whole ball" is, but I wouldn't take half my taxes to my accountant, and the other half to H&R Block, and professionally I expect no less from my clients. Unless of course, an issue comes up that I do not or cannot deal with, OR if there is a particular circumstance where bringing everything to me wouldn't be in the client's best interest.
I have to agree with ice and Indy here. An FA needs to at the bare minimum at least have knowledge of all your money out there. Otherwise any recommendations might not truly be in the best interest of the client. Which, in this case, would be the clients fault for not letting the FA know that they really have .