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