Millionaires value personal trainers more than their wealth advisors

The Shifting Priorities of Millionaires: Where Wealth Management Falls Short

A recent survey of millionaires has revealed a surprising trend: despite their wealth, many are dissatisfied with their financial advisors and accountants. In fact, only a third of millionaires use a wealth advisor for their financial planning, and a significant number are considering switching or firing their current advisor due to high costs and poor service. This dissatisfaction is not limited to wealth management, as accountants and tax lawyers also received low marks from respondents.

So, where are millionaires finding value? It turns out that personal services, such as personal trainers, therapists, and childcare providers, are highly prized by this demographic. In fact, millionaires gave their personal trainers an average satisfaction score of 9.3 out of 10, with therapists and sports coaches also ranking highly. This emphasis on personal well-being and family care suggests that millionaires are increasingly prioritizing their overall quality of life over solely focusing on accumulating wealth.

Understanding the Survey Results

The survey, conducted by Long Angle, a professional network for startup founders and CEOs, polled 114 individuals with a net worth of at least $2 million. The results provide valuable insights into the shifting priorities of millionaires and the types of services they value most. Notably, the use of financial advisors increases with wealth, but even among those with $25 million or more, there is a significant level of dissatisfaction with the service provided.

One of the primary complaints about wealth managers is the cost. With a median spending of $10,000 per year, many millionaires feel that the fees are too high, especially when they are based on a percentage of assets under management. This has led to a growing preference for flat fee structures, which are seen as more transparent and fair. Additionally, many millionaires feel that their advisors are slow to respond and do not provide personalized advice, leading to a sense of frustration and disconnection.

The Rise of “Soft Services”

The survey results highlight the growing importance of “soft services” for the wealthy, including health and wellness, family and kids, and travel and self-improvement. These services are becoming core competencies in the business of advising and helping wealthy families. As millionaires increasingly prioritize their personal well-being and family care, providers of these services are well-positioned to meet their needs and build strong relationships with this demographic.

Therapy, in particular, is becoming a vital service for many millionaires, especially those under the age of 40. With a median spending of $5,000 per year, therapy is seen as a valuable investment in mental health and emotional well-being. The benefits of therapy, including quality of care, impact, and personal connection, are highly valued by millionaires, who are willing to pay a premium for these services.

Implications for Wealth Managers and Financial Advisors

The survey results have significant implications for wealth managers and financial advisors, who must adapt to the changing needs and priorities of their clients. By providing more personalized and responsive service, and offering transparent and fair fee structures, wealth managers can rebuild trust and demonstrate their value to millionaires. Additionally, by expanding their services to include “soft” areas such as health and wellness, family care, and self-improvement, wealth managers can differentiate themselves and attract a new generation of clients who prioritize these aspects of their lives.