Commentary

The Disconnect Between Investors and Advisors

Steve Wendel

If you were to list the characteristics of an advisor you'd find most valuable, what would be at the top of your list? I bet it would be things like helping you reach your goals, having the appropriate skills and knowledge for the job, and communicating well. At least, those were the characteristics that scored highest on a recent study our team conducted. You personally might have different priorities--nothing wrong with that--but these three would be a good guess for an average investor. 

The question of what investors value is interesting in its own right. This study also looked at two more questions: Do advisors correctly understand what investors are looking for, and how do the perceptions of advisors and investors line up with research studies about the value of advice? In both cases, there's a pretty significant disconnect. To better understand that, let's learn more about the study (which you can find here, if you'd like to dig into the details).