Millionaires value personal trainers more than their wealth advisors

A new poll shows that millionaires are increasingly dissatisfied with their wealth managers and accountants, but they value their personal trainers and therapists.

Only a third of millionaires use a wealth advisor for their financial planning, and 1 in 5 plan to fire their advisor because of high costs and poor service, according to a new survey by Long Angle, the professional network for startup founders and CEOs. Of those who use an advisor, 26% are considering switching and 18% may stop using an advisor altogether.

In contrast, millionaires are most satisfied with their personal trainers, therapists, and other professionals who help them improve their health and take care of their families in general, rather than with financial matters.

“Improving your balance sheet or bank account doesn’t provide the same emotional value as improving your health and family life,” said Chris Bendtsen, head of market intelligence at Long Angle. “Services for personal well-being or for your children score highest.”

The findings highlight the growing importance of so-called “soft services” for the wealthy, as wealth managers, private banks and other firms look to attract and retain more high-net-worth clients. Health, wellness, family, children, travel, and self-development services, once considered superficial alongside financial counseling and tax planning, have now become core competencies in advising and assisting affluent families.

For the study, Long Angle surveyed 114 people worth at least $2 million, with the majority having net worths between $5 million and $25 million. It asked them to rank their levels of satisfaction with 14 of the most common professional services used by wealthy people, ranging from investment advice and estate planning to sports coaching and housekeeping.

Personal services, child care and education ranked first in terms of satisfaction. Out of 1 in 10, millionaires surveyed gave their personal trainers an average score of 9.3, the highest satisfaction score of any service category. They were also happy with their investment visa advisors (8.8), followed by their personal sports coach and therapist. They also placed high values ​​on services for their children, including private schools (8.3) and day care (8.2).

Financial services, household and property came last. The results of wealth management were particularly notable. Satisfaction levels for wealth advisors were 7.2, with most respondents saying they don’t even use an advisor. The use of financial managers increases with wealth. Among those with $5 million or less, only 22% use an advisor, compared to 44% for those with $25 million or more.

Their main complaint is the cost. The average spending for financial advisors is $10,000 annually, according to the survey. The majority of participants pay fees based on a percentage of assets under management. One-third of participants pay a fixed annual fee.

Many clients increasingly view asset-based fees as inherently unbalanced, with the manager being paid more simply as a function of asset size rather than performance or quality of service. Frustration with costs is one reason more advisors are turning to fixed fees.

“Flat fee structures reflect clients’ growing preference for transparent pricing and reduced conflicts of interest,” the report said.

Beyond the cost, wealthy investors are also frustrated with the service.

“The general feedback is that advisors are often slow to respond and that advice is not personal,” Bendtsen said.

Accountants and tax lawyers didn’t fare much better. While 82% of respondents use a CPA or tax professional for their taxes, 42% are considering switching tax advisors. Their main complaints were that the CPAs were slow to respond and were not proactive or strategic enough.

In terms of estate planning, half of the millionaires surveyed do not use estate lawyers, although their use depends largely on wealth levels. Among those with $25 million or more, 69% use a real estate attorney. When it comes to satisfaction levels, real estate lawyers rank under complex services.

Poor scores for financial and legal services providers, and high scores for more personal services, exceed the expected emotional benefits of feeling and looking better every day. Sports coaches, athletic trainers, teachers, and even house cleaners seem to be best at providing the kind of highly personalized, goal-oriented help that wealthy people seek, rather than the simple solutions typically offered by wealth managers and lawyers.

“What we’ve heard is that wealth managers, estate lawyers and CPAs are feeling more transactional,” Bendtsen said. “They don’t feel personal.”

Services provided to children also receive high marks and a large share of the spending of the wealthy. Participants spend an average of $53,558 per year on nannies, $30,000 per year on private school and $20,000 per year on day care. Both private schools and daycare scored above eight for satisfaction despite price.

Treatment is becoming increasingly important for the wealthy, especially wealthy young people. Millionaires gave their therapists a high average score of 8.3. Their average spending on treatment is $5,000 per year.

Nearly half (43%) of millionaires under the age of 40 use a therapist, compared to just 13% of millionaires over the age of 50. Among those who used a therapist, the main benefits cited were quality of care and influence, as well as kindness and personal connection.

“I think people under 40 are more active in terms of their mental health and emotional well-being,” Bendtsen said.