So you think you’re the only one?

Did you know that nearly one in three affluent investors uses more than one financial professional?1 And, while many of these investors have specific reasons for doing so, many more do not. Instead, they tell us “it just worked out that way.”

Recently, Principal Funds teamed up with Cogent Research to explore the reasons why investors are using multiple financial professionals — and how they might benefit by consolidating their assets with a sole or primary financial professional.

Complete research details can be found in our new white paper, “Maximizing Value through Asset Consolidation.” But here are some reasons why investors may want to consider consolidating their assets now.

Investors working with a single financial professional were:

  • Overall more satisfied than those working with more than one financial intermediary.
  • More confident in their financial professional’s capabilities than investors working with multiple financial intermediaries.
  • More likely to recommend their financial professional than those working with multiple financial professionals.

Approximately 5.7 million affluent households are working with multiple financial professionals in the U.S. today. This translates to about $735 billion in assets being managed by secondary financial professionals — many of whom don’t consider investments a mainstay of their practice.1 Challenge or opportunity? You decide.

I will share additional thoughts on this topic in future blogs. In the meantime, check out our white paper to learn more.

1 Cogent, May 2013.

Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc.

While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that none of the member companies of The Principal® are rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements.