World News: 14:00 GMT Thursday 6th December 2018. [YCharts via Businesswire via SPi World News]
YCharts, a modern investment research platform that enables smarter investments, today announced the results of the company’s 2018 Millennial Saving & Investing Habits survey, revealing that millennials aren’t convinced of the value provided by financial advisors, opting instead for self-directed brokerage accounts, yet are more financially responsible than they get credit for.
Millennials are self-sufficient, not sold on financial advisors, strong savers
The Millennial Saving & Investing Habits survey data revealed that 53 percent of millennials (ages 22-37) who participated in the survey manage their own investments and plan to keep it that way, demonstrating that they are very much financial “do-it-yourselfers.” Forty-one percent have a self-directed brokerage account, while only 11 percent have an advisor-directed brokerage account. Further, 31 percent utilize investing apps or robo-advisors, and only 30 percent of millennials who don’t use an advisor say they likely will in the future.
Millennials often get a bad rap for being poor savers, yet the data shows 44 percent save more than 15 percent of their pre-tax income, while more than half (53 percent) are saving at least 12 percent.
“The business model of many of today’s financial advisors is under attack,” said Sean Brown, CEO and President at YCharts. “With the $30 trillion wealth transfer underway and financial advisors being asked to justify their fees, it’s critical to understand the needs of the millennial generation. Our data indicates that millennials are ambitious, aggressive savers, and with the current market conditions, financial advisors have a limited opportunity to demonstrate their value proposition.”
While independent, millennials are unsure, have unrealistic investing goals
Three in ten (31 percent) of millennials are "somewhat" or "very nervous" about whether they're saving enough, but even the top savers have an unrealistic view of how quickly their savings level will lead them to seven-figure wealth; 65 percent of millennials think they'll reach seven-figure wealth by age 45 or sooner.
Despite those lofty aspirations, 37 percent of millennials currently have between $25k-100k in savings and investments, while just one-quarter (24 percent) have over $100k. Given reality’s shortfall from millennials’ expectations, some financial guidance, goal-setting, and a realistic strategy to reach those goals could go a long way for millennials and their portfolios.
How can financial professionals appeal to millennials?
If you are a financial advisor, the results of this survey may be a shock to the system. Millennials either aren’t aware of the value of a financial advisor, or they simply don’t think traditional wealth management is worth it. Based on the survey’s results, YCharts offered some advice to help advisors get started on a strategy to better cater to millennial needs:
Dedicated to understanding and improving the millennial/advisor relationship, YCharts data, tools, and visualizations provide advisors with a solution to better develop and communicate investment ideas. For more insights from the Millennial Saving & Investing Habits survey, please see the detailed report.
YCharts is a financial data and investment research platform that provides investors with comprehensive data, powerful visualization tools, and advanced analytics. Industry professionals use YCharts for idea generation, analysis, alerts, and updates from real-time news feeds to monitor the markets. YCharts has quickly become the market’s go-to fast, intuitive, cost-effective financial research platform. For more information, visit ycharts.com, contact firstname.lastname@example.org, or follow us on Twitter @ycharts.
About the Millennial Saving & Investing Habits survey
An online survey was conducted by YCharts with 600 American participants, 478 being in the Millennial age range (22-37), between July 9 and September 3, 2018. Respondents voluntarily participated in the survey as it was posted on social media platforms, online forums, and YCharts digital properties.
Business Wire: 14:00 GMT Thursday 6th December 2018
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