In Practice October 13, 2016

Social Media Has Become Critical for Advisers’ Marketing Efforts

Today, advisers are spending equal amounts of time on social media and networking.
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Eighty-five percent of advisers are using social media, up from 75% in 2014, according to the Putnam Investments 2016 Social Advisor Study, based on a survey of 1,018 financial advisers. In addition, 80% of advisers are winning new clients via social media, up from 49% in 2013, and 85% of advisers say that using social media expedites the time it takes to win new clients over.

Seventy-three percent of advisers are using LinkedIn, up from 64% in 2014; 54% are using Facebook, up from 36% two years ago; and 44% are using Twitter, up from 27% in 2014. Advisers say that social media has helped them attract an average of $4.9 million in new assets. Fifty-six percent said it helps them work more efficiently. Advisers also report that they are spending equal amounts of time personally networking and on social media, with each effort averaging 10 hours a week.

For advisers with $100 million or more in assets under management (AUM), 35% said that social media is an important part of their marketing efforts, and slightly more than the average among all advisers, 82%, have used social media to woo new clients. For this group, social media has helped them attract an average of $8.3 million in new assets.

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As Putnam Investments says in its report summarizing the findings of its survey, “Advisors Are Social,” “The question is no longer whether social media can function within the confines of closely regulated communications and transactions—but, rather, how social networking strategies work best in tandem with traditional methods to optimize adviser reach, influence clients and cultivate a successful practice. Notably, advisers who adopt multiple advanced features, including paying for premium access or content placement, are far exceeding the asset gains of their colleagues who are taking a more passive approach to social networking. As social media platforms continue to proliferate and evolve, a presence on social media is now ‘table stakes’ for advisers.”

William Connolly, co-head of global distribution for Putnam Investments, describes the importance of social media this way: “In our ongoing dialogue with financial professionals, it is eminently clear that social media’s role as a critical conduit for advisers in reaching the marketplace is going to continue to deepen and evolve for the foreseeable future.”

Brightwork Partners conducted the survey for Putnam in July. The full “Advisors Are Social” report, which includes links to tutorials on how to use LinkedIn, Twitter and social media and other forms of technology in general, can be downloaded here.

Data & Research October 13, 2016

Many Millennials Still Turn to Parents for Some Financial Assistance

Twenty-one percent are still living with their parents.
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Nearly half (47%) of Millennials have turned to their parents to pay for some of their expenses, such as cell phone plans, utilities, or movie and television streaming services, according to Fidelity Investments’ second biennial Millennial Money Study. In addition, 21% of this demographic group are still living with their parents.

Nonetheless, 85% of Millennials have saved some money, up from 77% in 2014. Nearly six in 10 Millennials, 59%, have set aside emergency savings, averaging $9,100—more than the $8,700 that Generation X and the $7,100 that Baby Boomers have saved. Furthermore, 60% of Millennials are saving for retirement, up from 51% in 2014.

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Among those Millennials with emergency savings, 86% have stored that money in a savings account, which currently is likely to earn less than 0.25% in interest. While 62% of Millennials have an investment account, oddly enough, only 9% consider themselves dedicated investors. Forty-four percent say they are spenders, while 46% say they are savers.

Sixty-one percent of Millennials use a mobile application to access their checking and/or savings account. Fifty-two percent use mobile apps to manage their credit cards, and 49% use them to pay bills. However, only 14% are using mobile apps to check their brokerage accounts, and a mere 18% are using them to manage their retirement accounts.

Although many Millennials turn to their parents for financial help, and 65% of Millennials say their parents have been good financial role models, ironically, 34% find it difficult to discuss money with their parents, up from 24% in 2014.

“Many young adults are interested in investing, but sometimes feel hesitant in taking that initial step,” says Kristen Robinson, senior vice president at Fidelity Investments. “Everyone needs to start somewhere, and with a bit more knowledge and experience under their belt, we anticipate Millennials will feel more comfortable engaging in conversations with family and friends and will start exploring how they can make their money grow. Finding ways to turn positive savings habits into positive investing strategies will help Millennials gain greater confidence—and, ultimately, financial independence.”

GfK Public Affairs conducted the survey of 615 people for Fidelity Investments in July; 305 of them were Millennials, 155 were Gen X’ers, and 155 were Baby Boomers.

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