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Where the Wild Things aren’t: mass affluent leaving brokers

Interesting data regarding mass affluent investors coming out of the Spectrem bush_finger_flipGroup, as reported by Investment News today.

According to the study:

only 22% of mass affluent investors — those with a net worth of $100,000 to $1 million — now rely on a broker as their primary financial adviser, down from 30% just one year ago.

Independent advisors picked up some of these defectors as clients, but most just appear to be going it alone.

This shift represents the first time in the eight years that Spectrem has tracked this data that brokers were not the primary option for mass affluent investors.

The online brokers are really well positioned in this market for new client and new asset gains.  The online brokers continue to roll out automated, professional grade services and products, perfect for clients accustomed to service-levels of the wirehouses but suspect of professional advice.