2 in 3 millennials are likely to start working with FA

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NEW YORK, 25 August 2021 / PRNewswire / – An overwhelming majority (96%) of investors who work with a financial advisor are satisfied (very or somewhat) with their advisor, according to a new survey of 1,000 U.S. investors released today by Broadridge Financial Solutions, Inc. (NYSE: BR), a global leader in FinTech.

Among those who don’t work with a financial advisor, 44% of all investors and 65% of millennials say they’re likely (very or somewhat) to start working with an advisor in the next two years .

Among millennial investors who don’t work with a financial advisor but are considering doing so, 53% say they are likely to work with an advisor due to fear of not being on track to meet their goals financial. Additionally, nearly half (46%) of all investors who do not work with a financial advisor, but plan to do so, say they are likely to work with an advisor to reduce financial stress, demonstrating that working with a financial advisor can help investors feel more confident about their financial goals and give them peace of mind.

“The last year in finance was defined by high-tech, high-tech experience, with technology making markets more and more accessible. Everyday investors are demanding a say in when and how they invest and are increasingly focusing on financial planning, especially in the wake of unprecedented market volatility. Financial advisors now find themselves at a critical juncture where they must directly demonstrate their value by providing client-centric tools, products and advice, ”said André Guillette, Vice President of Distribution Insights, Americas at Broadridge. “Asset and wealth managers have a great opportunity to provide the latest technological tools and new products to help advisors meet this changing demand. “

While financial advisors remain highly relevant, preferences for interacting with financial providers are changing. Across generations, investors indicate a preference for online or mobile access for financial education, buying and selling investments, reviewing their financial accounts and daily banking, highlighting the means that many investors are now looking for a first digital experience.

Investor-led trade expected to increase

Half (52%) of all investors and two-thirds (65%) of millennials now use a self-directed brokerage account. The use of self-directed brokerage accounts is highest among high net worth investors (64%), followed by mass investors (52%) and mass market investors (49%).

Self-directed transactions are expected to increase over the next 12 months, with a third of investors planning to increase the frequency of transactions, while only 5% plan to decrease.

Over a quarter (28%) of investors use both a financial advisor and a self-directed brokerage account, showing investor demand for long-term financial planning advice coupled with the ability to invest in the future. demand. Of these investors, 57% say they also use a self-directed brokerage account because they like to invest, while 33% cite diversification.

Self-directed brokerage accounts remain more popular than robo-advisers, as only 33% of investors are familiar with the concept of robo-advisers, and only 6% currently use one. However, demand among young investors appears high. Of millennials familiar with but not currently using a robo-advisor, 76% are likely (very or somewhat) to start using a robo-advisor in the next 12 months.

Investors express positive outlook despite volatile year

Sixty-six percent of investors say they have a positive (very or somewhat) outlook on their personal financial situation over the next year (vs. 13% with a negative outlook), and 39% of investors feel better (somewhat or a lot) ) about their financial situation today compared to 12 months ago (compared to 17% who feel less well).

About half (49%) of investors have a (very or somewhat) positive outlook for the US economy, and 53% have a (very or somewhat) positive outlook for the stock market for the next 12 months. Sixty-one percent say they are open (very or somewhat) to investing in the stock market.

Methodology

The Broadridge survey was conducted by 8 Acre Perspective to assess current sentiment among US investors. A total of 1,000 U.S. investors with investable assets of $ 10,000 + and family income of $ 25,000 + responded to the survey, which was conducted in April and May 2021. Definitions of wealth levels: high net worth ($ 1 million + investable assets), mass tributary ($ 100999K), Mass market ($ 100,000). For more details on the survey methodology, please contact a Broadridge media representative.

About Broadridge

Broadridge Financial Solutions (NYSE: BR), a world leader in FinTech with $ 5 billion in revenue, provides the essential infrastructure that powers investment, corporate governance and communications to enable a better financial life. We provide technology solutions to banks, brokers, asset and wealth managers and public companies. Broadridge’s infrastructure serves as a global communications hub for corporate governance by connecting thousands of public companies and mutual funds to tens of millions of individual and institutional investors around the world. In addition, Broadridge’s technology and operational platforms underpin daily trading on average more than the United States. $ 9 trillion global equities, fixed income and other securities. Great Place to Work® certified, Broadridge is included in the S&P 500® index and employs more than 13,000 people in 21 countries.

For more information on Broadridge, please visit www.broadridge.com

Media contacts:

Matthieu luongo
Prosek Partners
+1 646-818-9279
[email protected]

SOURCE Broadridge Financial Solutions, Inc.

Related links

http://www.broadridge.com

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