Young millionaires doubt the value of financial advisers, Spectrem Group said.
According to the Chicago company's monthly newsletter, millionaires under 45 said they prefer self-directed investing and they find the services of a professional adviser to be too expensive. The newsletter was released last week.
The survey polled millionaires in three different age groups: 41 to 45, 35 to 40 and under 35; the younger the millionaires, the stronger the sentiment. For example, 58% of individuals between 41 and 45 found the services of a financial adviser too expensive, as did 74% of those under 35.
Younger investors are looking for access to a lot of information online, according to Spectrem, especially personal account information, comprehensive service/product offering information, research on financial products and instruments, ability to aggregate financial information from multiple providers and articles on timely financial topics. Those under 35 were particularly interested in information about alternative investments.
To attract young millionaires, Spectrem said advisers should provide information about high- and low-risk investments, since they want to protect their wealth and expand it; invest in online applications; and provide in-depth technical information online.