MoneyAug 27, 2024
Ranked: What People Value Most in a Financial Advisor
@visualcapitalist
Paid Partnership withMorningstar
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What We're Showing
Using data from Morningstar, this chart show how often people chose a quality as "most important" or "least important" when working with a financial advisor.
Key Takeaways
- Expertise and knowledge in financial planning and invesments was the most important quality.
- Three out of the top four categories were related to personalization, with risk management being a very important element.
- Even among a survey pool that was mostly people of color, the majority of respondents didn't think a commitment to diversity or a shared background were important.
Dataset
| Quality | Most Important | Least Important |
|---|---|---|
| Expertise and knowledge in financial planning and investments | 60% | 11% |
| Personalized financial advice that meets my specific goals and needs | 54% | 16% |
| Ability to understand my risk tolerance and appropriately align my investments | 47% | 17% |
| Specialization in specific financial situations, such as retirement planning | 45% | 17% |
| Ability to communicate complex financial concepts in an understandable way | 42% | 22% |
| Transparent fee structure and pricing for my advisor’s services | 42% | 22% |
| Trust and rapport established during the initial meetings with my advisor | 36% | 24% |
| Ability to incorporate investment options that reflect my values | 22% | 41% |
| Positive online reviews or ratings about my advisor’s services | 22% | 46% |
| Recommendations from friends or family who had a positive experience with my advisor | 20% | 47% |
| Commitment to diversity and inclusion, making me feel comfortable and respected | 20% | 47% |
| Recommendations from other professionals, such as accountants or attorneys | 19% | 50% |
| Shares a similar background or cultural understanding | 10% | 68% |
Data sources
Source: Morningstar's Risk and Diversity Survey. The survey included 400 people across gender and race: 100 caucasian women, 150 women of color, and 150 men of color. Participants were asked the following question: "On each screen, we will show you 3 items to consider. Select which one is most important and which one is the least important of the items. You will see more than one screen and the items may appear more than once." A most or least share is defined as a percentage of how often an item was chosen as most or least important.
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