According to one new research study from Morningstar.

The report, compiled by several of Morningstar's behavioral researchers, summarizes findings from several separate studies the group has undertaken in recent years. In a pair of surveys conducted in 2018 and 2024, Morningstar asked investors to rank common attributes of advisors, from most valuable to least valuable. Additionally, the firm asked clients how much they would be willing to pay an advisor for various possible services. Finally, he compiled answers to why investors hired and retained their advisors.

“Each study is shining a different light on what customers value and trying to uncover the whole truth,” said Samantha Lamis, a senior behavioral researcher with Morningstar and one of the study's lead authors. “We wanted to give advisors the language to understand what investors value. Counselors know clients want peace of mind, but do they know what that means?”

The 2018 and 2024 studies on advisor attributes found that achieving personal financial goals topped investors' lists, followed by maximizing returns and advisors having “relevant skills and knowledge” among the 15 attributes respondents could rank. Overall, the findings from the two studies were consistent across the two studies.

“The ranking study is useful in that it gives us what's top of mind,” added Danielle Labotka, a behavioral scientist with Morningstar and another lead author of the report. “As we bring in these other pieces, we get deeper into the picture in a way that we wouldn't get in just one study.”

After incorporating other research, Morningstar produced a “mind map” of how clients feel about the value of their advisors.

As for practical advice, Lamas and Labotka said studies underscore the importance of providing personalized financial planning structured around life goals (and not just financial thresholds). Part of this is making it clear to customers an overview of how the plan is offered to individuals, so they don't feel like they're just being given boilerplate suggestions.

“Clients often, if they don't see you creating a plan, they won't know it's something that's targeted and tailored to them,” Lamas said. “You have to give clients a chance to understand what you've considered in their financial plan and their portfolio. It will help them understand that this is something they can trust and not something you just pulled off the shelf and say, 'This should be good enough for you.'”

One of the trickiest aspects of the advisor/client relationship is coaching behavior, especially when it comes to things like risk tolerance or reaction to market turbulence. However, clients may also rush exercise that they perceive as critical.

“People don't like it when it's implied they're making mistakes. They don't like to hear negative things about themselves. We all want to believe that we are the heroes of our own stories,” said Lamas.

Lamas and Labotka said that using tools or suggesting processes can be forms of behavioral training. For example, advisors may suggest trading rules, such as waiting a certain number of days before making a move, to avoid overreacting to market declines or chasing trending assets. It's also easier to get buy-in by providing concrete examples of what's working with other customers.

“Sometimes people may need to take more risk than they want,” Labotka said. “Will they be able to handle it? There are many different places where customers struggle because they don't know how to prepare for things like volatility and risk. Counselors can talk to clients and give guidance on how to handle those situations.”

Another area where customers may need to focus on setting expectations is returns.

“It's important to set expectations early in the relationship,” Lamas said. “There are also cases when achieving goals has nothing to do with returns. But if you have a client who is adamant about focusing on returns, it can be a good example that that client is not a good fit.”