Investors Average Nine Financial Advisers

Accordingto a recent study of families averaging a net worth of $90 million between 2000 and 2009, theseultra-wealthy investors rely on an average of nine financial advisers.  Advisers include “wealth managers from banks,registered investment advisers or a “family office” that manages a wide arrayof financial matters.”

Followingthe recent series of investment scandals, many wealthy investors seek comfortthrough more advice.  And when thewealthy add new advisers, they rarely dump the old ones. 

To avoid competitions to be the top dog (andincreasing investment risk), it’s best to name one adviser as the “quarterback”that the others must follow.  It’s alsoimportant to consider firing advisers when fees jump, performance is lacking,or an adviser deviates from the agreed-upon strategy. 

See Jason Zweig, Too Much Financial Help?, The WallStreet Journal, Sept. 20, 2013.