YOUNGER INVESTORS SHOW WILLINGNESS TO SHARE FINANCIAL INFO ONLINE, “UNCOMFORTABLE” DISCUSSING INVESTING IDEAS ON SOCIAL MEDIA
“Traditional media” remains a major source of investing ideas; 56 percent see financial advisors combined with technology as the best solution to building a portfolio
NEW YORK, (January 15, 2014) – Investors who’ve grown up with the Internet have a more open-source attitude toward investing. A recent survey shows significant willingness among college educated investors between the ages of 25 and 37 to share financial information online and explore web-based financial planning services in tandem with an advisor. By way of contrast to this general openness, slightly more than half indicated they are “not comfortable at all” talking about investing on social media platforms.
The data was gathered in a Survey Monkey survey sponsored by MacMillan Communications, a New York City-based public relations firm that focuses on the financial services industry. Approximately 40 percent of the 693 survey respondents said they are “somewhat,” “very,” or “extremely” comfortable sharing personal information with finance and investing websites. Another 32 percent would do so after thoroughly researched the site’s privacy policies. Fifty-three percent would consider investing in a crowd sourced investment portfolio built with help from investment professionals and their peers.
In spite of the increasing comfort level with web-based tools, those surveyed expressed a belief that the best outcomes were likely to be generated by a combination of advisors and technology, with 32.7 percent of respondents indicating they would prefer to work with a financial professional to build a portfolio and another 56 percent indicating a preference for a combination of an experienced financial advisor and a portfolio optimization service.
“We see a willingness on the part of those surveyed to use online tools in various ways to invest, though most would prefer to combine technology with input from a financial advisor or other investing professional,” said Mike MacMillan, president of MacMillan Communications. “Newer investors are showing a cautious enthusiasm for digital avenues into the market, driven in part by concern over costs.”
While they may embrace online tools, a significant majority of respondents were generally unaware of many of the currently available web-based portfolio construction services, with nearly 69 percent saying they didn’t know enough to have an opinion about the companies that are currently in the space. Just two percent of respondents indicated they currently use these services, with another 19 percent either interested in using them or in learning more about how they work.
But even Internet-savvy investors continue to rely on information from traditional sources, including The Wall Street Journal, Barron’s, CNBC, Kiplinger’s and Money Magazine. According to the survey, 46 percent of respondents ranked established media outlets their most-trusted source for investment ideas. By way of contrast, only four percent say social media platforms like Twitter, Facebook and LinkedIn are their preferred source of market intelligence.
“When it comes to investing, it’s clear that technology is valued but a personal touch is still important for the vast majority of investors,” said MacMillan.
About the survey
The survey was conducted in late October using Survey Monkey and targeting individuals between the ages of 25 and 37 who are either current stock market investors or planned to invest in the stock market in the next one to two years. Forty-two percent of those surveyed had household income between $50,000 and $100,000, while nearly 23 percent had household income between $25,000 and $50,000, and another 23 percent had household income of $100,000 or more. One out of three respondents indicated they use a financial advisor as well. Survey respondents were 47.8 percent male and 52.2 percent female.
About MacMillan Communications
Founded in 1996, MacMillan Communications is a leading provider of public relations counsel to clients in financial services and allied industries, including asset managers, investment banks, private equity firms, hedge funds, research firms, financial technology companies, and law firms. The agency and its principals have designed strategies and managed programs in support of many leading domestic and international companies, building brand value, supporting marketing outreach, and establishing thought leadership.
For Immediate Release
Contact: Deborah McCandless