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The role
of advisors

Americans who use financial advisors hold their advisors in high regard, with 71% highly satisfied. Both advisors and their clients can potentially benefit immensely from clear discussions about risk. In fact, how well an advisor aligns their recommendations with an investor’s risk profile is one of the strongest drivers of overall satisfaction.

Chart: Top drivers of satisfaction with financial advisors

Americans are broadly content with the service they receive from their advisors. 71% are highly satisfied.

Both advisors and their clients can potentially benefit immensely from clear discussions about risk. In fact, how well an advisor aligns their recommendations with an investor’s risk profile is one of the strongest drivers of overall satisfaction.

Chart: Advised investors and cash

Advice helps clients take action

Investors who use financial advisors put more of their assets to work in the market — a critical step in seeking to meet any long-term investment objective. However, there’s much to be done: on average, 26% of this cash is said to be intended for long-term savings or future investment. Putting minds at ease around investment risk may be a key first step in getting money off the sidelines.


Informed clients are satisfied clients

Understanding the risks in their portfolios – what they are and why they’re taking them – correlates strongly with advisor satisfaction: 92% of investors who feel well-informed about risk are highly satisfied with their advisors. In contrast, when not informed about risks, only 24% report high satisfaction with their advisor.

Chart: The importance of understanding risk

Chart: Understanding risk may drive more investment

Educating on risk could put money in motion

One-third of investors who use financial advisors state they would invest more if they had a better understanding of risks within their portfolios. A further third would at least consider investing more. Only a quarter feel they wouldn’t invest more if they had a better understanding of risk.


Knowledge gaps remain

Though understanding risk plays a critical role in influencing the amount individuals will invest, only a quarter of investors who use financial advisors spoke with their advisor about managing investment risk over the past year. Further, less than half say they’re highly informed about the risks within their portfolio.

Chart: Understanding risk

Take action

More than half of investors who use financial advisors are interested in using technology to help them construct portfolios. This presents an opportunity for advisors who can harness tools that unpack or build understanding around risks in a particular investment strategy.

Portfolio construction insights

Portfolio construction insights

New risks and industry dynamics are reshaping investing. Building thoughtful portfolios may be key to confronting change.

Are bonds in your blind spot?

Are bonds in your blind spot?

Use our Portfolio Profiler to uncover hidden risks and help manage them with fixed income. All it takes is two questions.

Resources to build better

Resources to
build better

BlackRock Portfolio Solutions empowers advisors with tools, insights and solutions to deliver better portfolios.