UHNW Lack Financial, Estate Plans, Survey Says
Ultra-high-net-worth individuals use their financial advisors to help make investments and diversify their portfolios, but less than half have asked their advisors for a complete financial plan and less than a third have asked for an estate plan, according to a recent study.

These are two areas that need the attention of the ultra-high-net-worth individuals, those with $5 million to $25 million in investable assets, and their advisors, according to the Spectrem Group study.

Only 31% of the wealthy use their primary advisor to establish an estate plan, according to the survey. "Clearly, these households will need to do some planning to effectively transfer their assets to their children and grandchildren," Spectrem concluded.

Likewise, only 48% use their advisor to establish a complete financial plan. 

"As these investors continue to determine their retirement path, it may become increasingly important to identify a liquidity plan as well as discuss long term care and related health issues and scenarios," Spectrem said.

The majority of ultra-high-net-worth investors use their advisors to diversify their assets (66%), select individual stocks and bonds (66%) and create an investment plan (61%).

The good news for advisors, most of whom give added services to the high-net-worth clients, is that 60% would go with the advisor if he or she left the firm where they are, and slightly more than 70% would recommend the advisor to a friend or family member.

Just over two thirds are comfortable with the fees they pay and most prefer to pay fixed fees rather than fees tied to performance, or fees that are commission based or asset based.

The number one insult an advisor can impose on a client and risk losing him or her is to not return telephone calls or emails, the survey says. But 86% give their advisors high marks for responding to inquiries. At the same time, one area advisors have to work on is improving their blogs and newsletters. Only 11% of investors rated their advisors' blogs as excellent and only 23% rated the newsletters as excellent, according to the survey.

Account statements on their other hand were rated excellent by 71% of respondents and face-to-face meetings rated an excellent from 61% of investors.

Even more important, 80% of the 419 respondents are satisfied with their advisor in general and 84% are satisfied with their advisor's knowledge and expertise in finances. The ultra-high-net-worth investors are the most satisfied with their advisors at 80%, with investors with $1 million to $5 million following at 76% and the mass affluent giving high marks to their advisors 66% of the time, according to the survey.

Honesty and trustworthiness topped the list of desired characteristics in an advisor, with those qualities considered the most important by 99% of respondents, even above a good investment track record, which came in second.

-Karen DeMasters

On The Move

Lazard Wealth Management announced that James Le Rose has joined the firm's New York office as senior relationship manager. Previously, Le Rose was senior client account manager and New York team leader at Bessemer Trust Company. 

BNY Mellon has two new hires. Susan Traver was appointed president of the company's recently opened Washington D.C. wealth management office. Previously regional managing director for Wells Fargo Private Bank, Travers has over 25 years of experience serving high-net-worth individuals and families in the Washington region. The firm's wealth management business has appointed Penny Weeks to be regional director of private banking for New England. Previously senior vice president and private banking team leader at Northern Trust, Weeks will be based in Boston.

JHS Capital Advisors welcomes a new team of wealth managers from Osterville, Mass. The team, previously with RBC Wealth Management, is led by Alfred Schofield, branch director, vice president and chartered retirement planning counselor. Dennis Cambal and Geoff Cambal are senior vice presidents and Tom Cypoliski and John Sargent are vice presidents. With about $250 million in assets under management, the Osterville team offers full-service wealth management with a special focus on retirement income strategies.

CONCERT Global Group has appointed Ron Hunt and Lou Barbaccia to its board of directors. Hunt is president of Hunt Wealth Management and is also managing director of CONCERT's Walnut Creek, Calif. office. Barbaccia is managing general partner of Encina Investment Group, which is headquartered in Campbell, Calif.

Laird Norton Tyee has announced two promotions. Susan Talton has been promoted to client advisor and leads the firm's elder planning group. Dana Rekow has been promoted to the newly created position of managing director of client services.

Baker Tilly Investment Advisors has announced two appointments in their Milwaukee, Wis. office. Jay Czarapata has been hired as a senior investment advisor representative in the firms' individual wealth management practice and Laura Barry has been promoted to managing director.