For the first time ever, the number of mass affluent investors who are choosing independent financial planners is on par with those using full-service brokers, according to a new report from the Spectrem Group.
In its report, “Mass Affluent Investor 2009,” the Spectrem Group found that the number of mass affluent households using full-service brokers as their primary advisor fell to 22% in 2009 from 30% a year ago. Meanwhile, the number of these investors using independent financial planners as their primary advisor rose to 22% from 20%.
George Walper, Jr., president of Spectrem Group, says that clients are now looking for more than just help with investing; they want someone to help them plan their futures, including their retirements.
“A year ago 99% of Americans said [the economic meltdown] was the biggest event of their lifetimes,” Walper says. “And things haven’t gotten any better. By that I mean they’ve still lost a lot of assets, unemployment is still high. They see this as a complete generational change.”