American investors are overwhelmingly happy with their financial advisory relationships, according to a recent survey of over 1,000 high-net-worth and mass-affluent investors conducted by Goldman Sachs Asset Management, but those advisors could be missing key opportunities to deepen those relationships.

Perhaps the best news for incumbents is that 93% of investors are satisfied with their current financial advisor relationships, with 70% being very satisfied. Only 2% are unsatisfied.

Our survey showed that financial advisers could expand and deepen client relationships by offering additional services in areas their clients value, led by protection against market declines, tax-smart investing strategies, individualized portfolios, and at current rates, savings solutions.

We believe our survey offered three main takeaways:

  • More is More: Investors expect advisers to provide more comprehensive solutions across their wealth needs. This expectation extends to a broad array of investments – such as alternatives and savings accounts – and advice and planning, including tax preparation and specialized services. Those given more solutions are overwhelmingly more loyal, more satisfied and give more referrals.
  • Make It Personal: Investors want to be offered solutions that meet them where they live in specific and personal ways, including individualized portfolios that are tailored to specific objectives. As their wealth grows, investors have a greater appreciation for the need to meaningfully diversify their investments and want distinct offerings.
  • Remind Investors of Advisers’ Value: Investors may need to be reminded periodically of services financial advisers may assume their clients know they perform, like rebalancing portfolios and updating financial plans, especially during challenging market cycles. Simplicity in interactions is key to enhancing the client relationship.

According to our survey, top priorities for investors who receive assistance from financial advisers were led by protection against market declines – 95% of respondents value it. More than 90% value personalization, investing in individual stock portfolios versus generic mutual funds or ETFs that track markets. Tax-smart investing and techniques to increase after-tax returns are valued by 95% of investors.

When it comes to active portfolio management, 93% value their professionally managed individual bond portfolios (such as laddered individual bonds with different maturity dates).

Of clients not receiving a particular service, 67% would have interest in portfolios protecting against market declines; 62% in tax-smart investing; and 41% in individual stock portfolios. This underscores demand for bespoke solutions that may enhance overall portfolio returns.

Comprehensive financial and retirement planning was deemed important and could also present opportunities for financial advisers: thirty-eight percent of respondents do not currently receive it, and 81% of them perceive the service as valuable. This is also true of creating a plan to manage income in retirement, with 42% not currently receiving it and 76% of that group perceiving it as valuable.

Other opportunities to meet the shifting demands of investors include: dynamic bond portfolios that optimize for taxes and tax-smart investing, with 80% of investors not receiving it and 50% perceiving it as valuable; and high-yield savings accounts to meet the high-rate environment – more than 60% reported they do not receive this service, yet value it.

Single stock risk diversification, or transitioning away from concentrated stock positions, is valued by more than half of respondents, but 64% do not currently receive it.

While alternatives and specialized offerings such as IPOs are small parts of overall portfolio allocations, investors increasingly demand them. Some of that rising interest may be related to enhanced transparency and access to education around these products and services.

Younger investors reported higher demand than older cohorts for differentiated investment offerings – such as IPOs and alternatives – possibly due to risk appetite, or a desire to feel connected to what they own. Younger respondents place higher perceived value than their seniors on services they are not receiving today.

Bottom line: advisers have an opportunity to expand services to enhance their value. Top areas of opportunity include estate transfer planning, to which 77% of investors do not have access, but 55% of them perceive as valuable; analysis of future health care costs, 85% not having and 45% of them valuing; trust services, 74% not having and 51% valuing; tax planning strategies, 83% not having and 63% valuing; and cash flow analysis, 70% not having and 50% valuing.

The survey was conducted April 20 to May 1, 2023, by Goldman Sachs Asset Management and Absolute Engagement of 1,000 U.S. high net worth and mass affluent investors who use services provided across broker-dealers, registered investment advisers and wire houses.

Among respondents, 50% report household investible assets of $500,000 to $1 million; 36% have $1 million to $5 million; and 14% are over $5 million. The survey population skewed older, with 57% over age 65 and 25% under 55. Men accounted for 55%, women 45%.

Troy Thornton is partner, head of U.S. Third Party Wealth at Goldman Sachs Asset Management.