Market Turmoil and Portfolio Losses are Causing San Francisco Investors
to Rethink Relationships with their Financial Service Providers
According to a new Charles Schwab survey, 24 percent of San Francisco
investors in the U.S. are considering changing financial services
firms/brokers in the next year based on their overall frustrations with
their current situation. With 86 percent saying they are frustrated
about the money they lost in the past year and 76 percent admitting they
are only somewhat confident in the guidance they receive from
professionals, investors are taking stock of their own actions and
accountability, while considering what they want and expect from their
brokers.
The survey uncovered investors’ top reasons for why they would leave
their current firm. More than half (52 percent) listed cost and 50
percent cited “the financial stability of my firm being in question.” In
addition, 39 percent listed changes in their firm’s policy as a reason
they would consider leaving their firm. Only slightly more than half (53
percent) of respondents said they trust their current firm, and just 40
percent think their firm is more stable than other firms.
At the same time, many investors were wary of change, and when asked for
reasons why they would stay with their current firm, responses included:
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‘I don’t know of any better options’ (30 percent)
-
‘I might lose money if I make a switch’ (26 percent)
-
'It’s time consuming to make a switch’ (24 percent)
When asked what they would like to be different about their financial
firm or broker in the next year, the top responses related to the cost
of working with them (33 percent) and the frequency of proactive contact
(33 percent), followed by the quality of advice (26 percent).
“With one in four San Franciscans ready to make the move, investors are
seeking a genuine partner they can trust to help them plan for the
long-term,” said Jeremy Hoover, financial consultant at Charles Schwab’s
San Francisco branch. “They are understandably frustrated by the last
year and have responded by expecting more from the experts they turn to
for guidance.”
Proactive Stance
However, investors admit the responsibility is a shared one. Fifty-four
percent of those surveyed now review their finances at least once a day,
compared to 26 percent prior to fall 2008.
