Investors are starting to shift in the ways they invest, with more turning to so-called
Affluent Millennials are the demographic most likely to have an adviser relationship, Julia Johnston-Ketterer, senior director at Cogent Reports/Market Strategies International, said during a webinar on Thursday. When it came to the actual portion of assets they park with an adviser, however, “they have the lowest percentage of assets” compared with other demographics.
“Millennials are dabblers,” Johnston-Ketterer observed, “with different products that they manage in different ways. They are most likely to be interested in products that grow wealth. It is a complex world with complex relationships.”
More than two-thirds (69%) use some kind of advice, a moderate increase from the previous year’s 66%, and Millennials, at 75%, have the largest percentage of advised investors of any generation. “This generation has intergenerational wealth invested professionally to manage the legacy assets,” Johnston-Ketterer explained.
Overwhelmingly, Millennials prefer
Affluent investors, including Millennials, don’t always know and understand the term
Brand recognition is another key identifier Cogent is
Other findings in the survey are:
- The average net worth of affluent investors stands at just over
$900,000; Nearlyone-third of affluent investors (31%) are completely self-directed, Cogent found, managing their assets with no professional assistance whatsoever; Just11% of affluent investors have their assets managed exclusively by an investment professional; and
- Investors who have some advice relationship were just as anxious and uncertain after the financial downturn as those without a relationship.
More information about Cogent Report’s Investor Brandscape is on Cogent’s website.