Millennials and professional investment advice 2024

Millennials are faced with unique challenges and opportunities when it comes to managing their investments. A recent survey conducted by Invessed and YouGov sheds light on how this generation approaches professional investment advice. Let's dive into the key findings and what they mean for both millennials and wealth management.

The current state of affairs

The survey reveals some interesting trends among millennials regarding their use of professional investment advice:

• Only 8% of millennials currently seek professional investment advice
• 12% are planning to seek such advice in the near future
• A significant 60% do not plan to seek professional advice at all

These numbers paint a picture of a generation that is largely self-reliant when it comes to managing their investments. But what's driving this trend?

Barriers to Seeking Professional Advice

The survey identified several reasons why millennials are hesitant to seek professional investment advice:

• 14% feel that the fees associated with professional advice are too high
• 9% feel uncomfortable about seeking such advice
• 36% prefer to manage their investments on their own

These findings suggest that there's a significant opportunity for advisors to address these concerns and demonstrate the value they can provide to millennial investors.

The DIY approach: opportunity or risk?

With 36% of millennials opting to manage their investments alone, it's clear that this generation values independence and self-directed learning. This do-it-yourself approach can be empowering, but it also comes with potential risks:

• Lack of expertise in complex financial matters
• Potential for emotional decision-making during market volatility
• Missing out on professional insights and strategies

Financial institutions and advisors need to find ways to support this independent spirit while still offering valuable guidance and expertise.

The road ahead

For the wealth management industry to better serve millennials, several strategies could be considered:

• Develop more transparent fee structures to address concerns about high costs
• Create educational resources that cater to millennials' preference for self-directed learning
• Offer hybrid models that combine self-management with professional oversight
• Leverage technology to provide more accessible and user-friendly advisory services

By adapting to the unique needs and preferences of millennials, wealth managers can help this generation make more informed investment decisions and secure their financial futures.

The Invessed survey highlights a significant shift in how millennials approach investment advice. While there's a clear trend towards self-management, there's also an opportunity for the financial industry to evolve and meet the changing needs of this generation. By addressing concerns about fees, leveraging technology, and providing value-added services, financial advisors can position themselves as valuable partners in millennials' financial journeys.

As we move forward, both millennials and financial professionals must try to find common ground, ensuring that this generation can benefit from expert advice while maintaining the independence they value. The future of investment advice may well lie in striking this delicate balance.