In the Midst of the Longest Bull Market in History, Investors Are Preparing for the Future – and Looking to Advisors for Help

• The 2018 Fidelity^® Millionaire Outlook Study Finds Investors Have a Positive Current Financial Outlook But Are Uncertain About the Future
• Real Estate and Consumer Spending are Key Areas of Current Optimism, Economy and Stock Market are Key Areas of Future Concern
• Study Finds Concerns About the Impact of Tax Reform Are Driving Investors to Seek Advice
• Findings Also Reveal that Millionaires Are Looking for More From Their Advisors than Investment Management

BOSTON--(BUSINESS WIRE)-- Fidelity Investments^® today released the results of its 10^th Millionaire Outlook Study, an in-depth survey analyzing the investing attitudes and behaviors of more than 1,000 high net worth households, including 600+ millionaires. The study revealed that Millionaire Outlook sentiment is at its most dramatic disconnect – with the highest ever current financial outlook and near-record low future financial outlook. However, concerns about the future are mitigated by having a financial advisor: those investors with an advisor are more positive on all metrics – including future outlook – than those without an advisor.

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In the Midst of the Longest Bull Market in History, Investors Are Preparing for the Future – and Looking to Advisors for Help (Graphic: Business Wire)

“We’re in the midst of the longest bull market in history, which means that most investors have seen upside in their portfolios for almost 10 years, but they’re beginning to think about how to prepare for a future that may have some more bumps,” said David Canter, head of the registered investment advisor segment at Fidelity Clearing & Custody Solutions. “So, right now in particular, advisors are going to be hugely important in helping their clients plan for the future.”

Helping Investors Navigate Topics like Regulatory or Tax Reforms Represents Huge Opportunity for Advisors

More than half of the millionaires surveyed said that they would be willing to pay more for financial advisors if they can help them navigate the recent tax reforms and minimize taxes. And while four in 10 millionaires with advisors said that their advisors proactively reached out to them regarding the impact of tax reforms, roughly that same number said they haven’t had any conversations with their advisors regarding the reforms. Given the willingness of investors to pay more for this, we believe it represents a missed opportunity on the part of some advisors. Topics like regulatory or tax reforms are something advisors should proactively communicate on.

Investment Management is Core to What Millionaires Value, But Many Want More

“What we continue to hear from investors is that managing the money is the foundation of their relationship with advisors – but they want more,” continued Canter. “Advisors need to think about how they’re helping their clients achieve their life goals and dreams.”

Roughly half of millionaires value money management the most from their advisors. But many are focused on higher-level services, including financial planning (retirement, college savings, estate planning), peace of mind (taking care of loved ones, freedom from worry), and, ultimately, fulfillment (accomplishing life’s purpose and leaving a legacy).

“In order to appeal to investors, we believe advisors need to provide them with a new ‘standard’,” said Canter. “They need not just an ‘intelligence quotient’ in handling clients and their portfolios, but also an ‘emotional quotient’ to better connect and even a ‘digital quotient’ to evolve their customer experience.”

Key Takeaways for Advisors to Deliver More Value to Investors

The study found that advisors who deliver across all areas – intelligence quotient (IQ), emotional quotient (EQ), digital quotient (DQ) – generate greater loyalty and more referrals. Eighty-nine percent of millionaires who work with advisors with high IQ, EQ and DQ were likely to recommend them and referred their advisors almost two to one vs. all other advisors.

For more details on the findings, visit go.fidelity.com/millionaireoutlook2018.

About the Fidelity Millionaire Outlook Study:

The 2018 Fidelity^® Millionaire Outlook Study was conducted during the period March 22^nd through May 8^th, 2018. It involved a total of 1,429 investors, including 639 Millionaires. The study was conducted via a 25-minute (on average) online survey, with the sample provided by TNS, a third-party firm not affiliated with Fidelity. Respondents were screened by a minimum level of investable assets (excluding retirement assets and primary residence), age, and income levels. Fidelity has been tracking Millionaire sentiment for over 10 years via its Millionaire Outlook Confidence Index. The Current Millionaire Outlook Confidence Index (‘Current Outlook’) consists of five measures based on millionaires’ assessment of the current strength or weakness of the following: economy, stock market, value of real estate, consumer spending, business spending.

About Fidelity Investments:

Fidelity’s mission is to inspire better futures and deliver better outcomes for the customers and businesses we serve. With assets under administration of $7.3 trillion, including managed assets of $2.6 trillion as of August 30, 2018, we focus on meeting the unique needs of a diverse set of customers: helping more than 28 million people invest their own life savings, 23,000 businesses manage employee benefit programs, as well as providing more than 13,000 financial advisory firms with investment and technology solutions to invest their own clients’ money. Privately held for 70 years, Fidelity employs more than 40,000 associates who are focused on the long- term success of our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about.

The content provided herein is general in nature and is for informational purposes only. This information is not individualized and is not intended to serve as the primary or sole basis for your decisions as there may be other factors you should consider. Fidelity Clearing & Custody Solutions does not provide financial or investment advice. You should conduct your own due diligence and analysis based on your specific needs.

Third party marks are the property of their respective owners; all other marks are the property of FMR LLC. Third parties referenced herein are independent companies and are not affiliated with Fidelity Investments. Listing them does not suggest a recommendation or endorsement by Fidelity Investments.

Products and services provided through Fidelity Institutional Asset Management® (FIAM®) to investment professionals, plan sponsors and institutional investors by Fidelity Investments Institutional Services Company, Inc., 500 Salem Street, Smithfield, RI 02917.

Fidelity Clearing & Custody Solutions® provides clearing, custody, or other brokerage services through National Financial Services LLC or Fidelity Brokerage Services LLC, Members NYSE, SIPC. 200 Seaport Boulevard, Boston, MA 02210.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20181022005093/en/

Fidelity Investments

Corporate Communications, 617-563-5800

fidelitycorporateaffairs@fmr.com

or

Nicole Abbott, 201-915-7548

nicole.abbott@fmr.com

Source: Fidelity Investments