Millennial investors sour on financial advisors: report
Millennial investors are more skeptical of financial advice than older generations even though it's the latter group that's been hit hardest by market gyrations, according to a recent survey by Accenture.
The survey of digitally savvy U.S. investors also showed that they're more determined than their predecessors to learn how to get things right.
Many perceive financial advisors as salespeople who push products that enrich their firms rather than their clients. As a result, they were four times more likely than baby boomers to say they were unwilling to act on the advice of a financial advisor without first consulting other sources.
Over half admitted taking financial advice from someone other than an advisor — including family, friends and social media contacts — in the past two years.
Forty-four percent said they “spend a lot of time researching alternatives before making a major purchase decision,” compared with 33% of baby boomers.
Despite their heavy use of the Internet and social media, they're hesitant to share personal information with advisors and view the relationship as a business collaboration at best.
“This poses a fundamental challenge for financial advisors who will see the greatest transfer of wealth in history from boomers to their heirs over the next several decades,” says Accenture's Alex Pigliucci. “But counter to prevailing wisdom, our research suggests millennials are a highly viable target for advisors.”
But will anybody be listening?
If you're part of this cohort, what your view on financial advisors?
By Gordon Powers, MSN Money
Posted by: ZREXER | Feb 22, 2022 11:25:32 AM
I have given up on advisors completely for the reasons given above. I read extensively and do my own reseach. I believe I am more knowledgable than most 'financial advsors'. My portfolio has thrived since I said gave up on 'professional planners'.
No one is interested in my own financial planning and success than I am!
Posted by: SP | Feb 23, 2022 6:18:54 PM
If we've learned anything from the financial industry since the mid 1990's it is that anyone associated with finance cannot be trusted.
Either they are incredibly incompetent and oblivious to their own ineptitude or corrupt and thieving. Kind of like most of the leaders running our nations government and industries.
Ever wonder why the price of Gold and Silver continues to shoot through the roof?
I am older than the Millennial investors but not old enough to have gotten in on the Babyboomers realestate pyramid scheme at the right time so I'm left to invest in things which cannot be debased or inflated away.
Posted by: GG | Feb 25, 2022 10:22:08 AM
I agree with the above comments - after entrusting "professionals" with my portfolio over the years and not being involved enough, I have only recently begun to delve into things that I should have done years ago. Most important thing I have learned: DSCs (deferred service charges) and MERs and what they really mean. Without going into a lot of detail, I can pretty much sum it up this way - if the average investor really understood what's involved with investing in mutual funds, there would be a mass exodus out of them. Most mutual funds under perform the market, and may have very high MERs. Say you have a mutual fund with a MER of 2.5% and and $100k. Say the market is flat that year and does nothing. Your portfolio at the end of that year is now worth $97.5k. Want to sell it and move into another? Careful, you planner may have locked you into this one long term and the DSC could take another percentage off this. If you bring this to your planner's attention, they will go out of their way to talk circles around you (and they can, they've got all the buzzwords, stats, etc at their disposal) and they'll want to meet with you to discuss better options. The reality is, there is not much incentive for them to see you perform well, but there is a lot of incentive for them to keep you on the mutual fund treadmill. Better to go the ETF route. Simple and low cost. And many of them out perform mutual funds!