A new research study by Morningstar Inc. revealed that investors place significant value on personalized financial advice and goals-based planning in their financial advisers but hold mixed reactions on behavioral coaching and maximizing returns.
Investors highly value having access to advice they can rely on. However, investors are not just looking for knowledgeable advisers; they want advice tailored to their specific needs and circumstances.
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Those surveyed expressed a willingness to pay a premium for advice that is attuned to their unique financial situations, indicating that feeling “heard” and “understood” by their adviser is paramount.
The ability to delegate financial decisionmaking to an adviser was another key factor for investors. They appreciated that their adviser’s expertise allowed them to “sleep better at night,” believing their financial future was in capable hands.
Another critical theme that resonated with investors was the value of goals-based planning. They signaled appreciation not only for the achievement of their financial goals, but also for the process by which advisers helped them to articulate, understand and work toward these goals.
The study found that investors often rely on their advisers to help identify what they truly want to achieve with their money. Additionally, the ongoing support and direction provided by advisers throughout the financial journey were highly valued.
Behavioral Coaching and Maximizing Returns
In contrast, the study showed its investor respondents did not prioritize behavioral coaching and maximizing returns as highly as personalized and goal-based planning.
Behavioral coaching was not universally recognized as a top priority, though it was shown to be valued in some contexts. For example, in studies in which investors were given detailed examples of behavioral coaching, they expressed a willingness to pay for this service, recognizing its importance in helping them stay on track to achieve their financial goals.
A focus on maximizing returns did not emerge as a primary concern for all investors. While returns are important, the results of the study suggested that they are not the main value investors seek from their advisers. This discrepancy may be due to how investors perceive and discuss their financial concerns, according to Morningstar. While returns can be a convenient talking point, they often serve as a stand-in for deeper, more personal anxieties about financial security.
“It’s important to set expectations early on in the relationship,” said Samantha Lamis, a senior behavioral researcher with Morningstar, in a statement. “There are also cases when reaching goals is not about returns. But if you have a client that’s persistent in focusing on returns, it might be a good example of that client not being a good fit.”
The research for the study included surveys conducted in 2018 and 2024 in which Morningstar asked investors to rank 15 common adviser attributes from most to least valuable.
