Well over half of individuals who are working with a financial advisor are very satisfied with their relationship with the advisor, according Janus Henderson.
In fact, only 2% are dissatisfied with the relationship, Janus Henderson found through its recently released survey, “Investor Survey: Insights for a Brighter Future.”
Among investors working with a financial advisor, 65% are very satisfied with the quality of the relationship, and 33% are somewhat satisfied, the survey of 1,000 people with at least $250,000 in investable assets showed.
Those investors who said they are very satisfied with their advisors said three qualities are key to the relationship:
• Provides peace of mind that I’m on track to reach my goals (69%).
• Cares about me as a person, beyond just my financial situation (61%).
• Provides financial education and makes me smarter (56%).
However, investors are still nervous and it is politics and the upcoming presidential election that has many of them more worried than economic conditions, according to the survey.
Nearly half of investors said they are very concerned about the impact the 2024 presidential election will have on their finances, while persistent inflation, the risk of a recession, rising interest rates and poor stock market performance were of primary concern to smaller proportions of those surveyed.
“Despite investors’ concern about the 2024 U.S. presidential election, results haven’t historically been a reason to exit the capital markets. In fact, looking back at S&P 500 returns from 1937 through 2022, the average annual return was 9.9% in presidential election years, and 12.5% in nonelection years,” Matt Sommer, head of the specialist consulting group at Janus Henderson Investors, said in a statement.
One antidote to these worries is to active management, according to the survey.
Among respondents who own mutual funds or ETFs, 66% want active funds in their portfolio, with 29% preferring mainly active funds and 37% preferring an equal mix of active and passive funds. Only 17% said they prefer mainly passive funds, 12% have no preference and 4% were unsure.
