allaboutadvocacy.com

Bailing Out

Prince & Associates conducted a very timely survey that underscores what we have been saying about charming advocates and neutralizing badvocates. It is reported in the WSJ. More than 8 out of 10 rich investors plan to switch financial advisors. The sample was among investors with $1 million + investible assets. No small change. Strikingly and alarmingly, a hefty 86% plan to tell other investors to stay clear of their advisors.  Rich investors are turning into badvocates nearly overnight. Not that I can blame them considering the financial disaster hitting both the rich and poor and all those in-between. Only 2% of investors (nearly no one) is likely to recommend their current financial advisor.  Yikes. It gets even scarier. The survey found that “highly regarded well-known brands” are more likely to be the ones that people want to take their money away from.  Investors who keep their money with smaller niche firms are more satisfied with their lesser known firms because they probably get better service and experience less staff turnover.  Badvocates are upending Wall Street as we speak. Maybe this redefines the word “bailout.”