Millennials Will Move More Money to FAs
Financial advisors have an eager and willing market among high net worth millennials, according to recent surveys. Investors under 35 are more likely to allocate more money to financial advisors in the coming years than members of other generations, according to one survey. And they’re also more keen to learn about financial planning than previous generations, another survey finds.
Among affluent millennials, 64% plan to increase assets managed by advisors over the next decade, according to a recent Global X survey.
Meanwhile, that figure drops to 48% for Generation X and the general population, according to the survey, which polled 200 millennials with more than $250,000 in liquid assets, 200 Generation X members with more than $500,000 and 200 members of the general population, aged 21 to 86 years old, with more than $100,000.
But Global X also found millennials expect more from their financial advisors. Tech capabilities matter to 93% of millennials, compared to 71% of Gen Xers, according to the survey. Having social media presence is also important — advisors who only use LinkedIn, for example, are missing out: 83% of millennials are connected to their advisor on Facebook, 66% on Twitter and 68% on Instagram, while only 35% connect to advisors on LinkedIn, Global X’s survey found.
For example, 69% do their own research to boost their financial education, compared to 61% of respondents between 36 and 55 and 47% for those over 55, according to the survey, which polled 479 individuals in the U.S., Canada and the U.K. with an average of $5.7 million in liquid assets. What’s more, rich millennials start learning about finances earlier: on average, they start formal financial education around 20, compared to 25 for Gen Xers and 32 for Baby Boomers, according to the survey.
To do so, almost half of U.S. millennials are willing to add more risk to their portfolios, compared to 27% of Gen Xers and 13% of Baby Boomers, according to the survey, which polled 18,414 people from 16 countries and territories.