Millennials Prefer Financial Advisors More Than Robos
May 23, 2022
A study found that the number of Millennials that had an advisor was 40 per cent while those using automated financial services only accounted for seven per cent. The study was done by Natixis Investment Managers.
I suspect the results that heavily favoured a financial advisor was because it surveyed those with at least US$100,000 of investable assets. My observation is people with reasonable amounts of money to invest prefer dealing with a human.
The study included over 8,000 people in 24 countries and was conducted in 2021.
There was a large discrepancy in the level of trust. Nine out of ten millennials trust their advisor for providing good information whereas only one quarter of those surveyed trusted social media.
Those in North America had the highest rating for using a financial advisor at 72 per cent. The most surprising statistic in the survey was in North America slightly more millennials had a financial advisor than the older generation of baby boomers.
As for the ongoing thought process of whether humans or technology are best suited to provide financial advice, I think it is a combination of the two working seamlessly together is the perfect formula.
There are some tasks that computers are far better performing and by a wide margin. However, there are other things that are best done by a human.
Let technology crunch the numbers and provide cash flow projections of what life might be like during retirement. But have a person to help you navigate the human side of investing and assist with important judgment decisions.
Peter Watson is registered with Aligned Capital Partners Inc. (ACPI) to provide investment advice. Investment products are provided by ACPI. ACPI is a member of the Investment Industry Regulatory Organization of Canada. The opinions expressed are those of the author and not necessarily those of ACPI. Watson provides wealth management services through Watson Investments. He can be reached at www.watsoninvestments.com