Nearly two-thirds of U.S. millionaires say their investment advisers have failed them during the global recession, according to a recent survey by Spectrem Group.
Only 36% of respondents were pleased with their advisers performance last year. The poll was conducted in November of 750 U.S. households with more than $1 million in net assets.
14% said they’ll increase their use of financial advisers.
U.S. millionaires lost an average 30 percent of their assets last year, with 17 percent of respondents saying their assets declined by 40 percent or more, Spectrem said. The Standard & Poor’s 500 Index dropped 38 percent last year, its worst since 1937, and global stock markets surrendered $28.7 trillion of their value, or 47 percent. Bloody.
Is it surprising that high-net worth individuals are not being well served by their advisors? It turns out that getting good advice requires more than being able to pay for it — you need to learn who to avoid and who to listen to.
There was a huge pushback to the Apprenticed Investor column that urged people to “own their portfolio” and take responsibility for their trades:
“He who blames others has a long way to go on his journey. He who blames himself is halfway there. He who blames no one has arrived.”
– Chinese proverb
That’s good advice for investors.
If any one wants more active assistance managing their Portfolio or Estate planning, feel free to look here for more info.
Sources: Millionaires Say Advisers Failed Them in Crisis, Survey Shows Christopher Condon Bloomberg, Jan. 6 2009 http://www.bloomberg.com/apps/news?pid=20601213&sid=aLWAapH3EWx4&
Take Responsibility for Your Stock Losses Barry Ritholtz The Street.com, May 2005 http://www.thestreet.com/_rms/comment/barryritholtz/10216943.html
Originally published at The Big Picture blog and reproduced here with the author’s permission.