Survey: Younger Financial Advisers Tech-Savvy, Successful

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    NEWSLETTERS

    Is older and wiser always better? When it comes to managing your money, the answer is: Maybe not. On average, younger financial planners or advisers manage $8 million dollars more in assets compared to their Baby Boomer counterparts, defined as 48 and older according to a Fidelity survey of 1,200 financial advisors nationwide. Stephanie Chuang reports. (Published Tuesday, Jun 11, 2013)

    Is older and wiser always better? When it comes to managing your money, the answer is: Maybe not.
     
    On average, younger financial planners or advisers manage $8 million dollars more in assets compared to their Baby Boomer counterparts, defined as 48 and older, according to a Fidelity survey of 1,200 financial advisers nationwide.
     
    Perhaps more significant, though, was that surveyed clients tended to give younger advisers three times more referrals than to older advisors.

    But why?
     
    “What they attribute those numbers to is simply younger advisers’ and younger investors’ commitment to technology," said Cliff Goldstein. He’s a personal finance specialist for NerdWallet, a San Francisco-based company that specializes in giving consumers tips on how to save.
     
    Younger advisers are also more familiar with tools like Skype and Google Plus also help cut travel time usually spent on in-person meetings.
     
    “It gives them more time to dedicate to their business,” Goldstein said, adding that newer software platforms also “better allow them to manage their portfolios.”
     
    But most of all, is social media.
     
    “They’re quite active on Facebook in terms of connecting with their clients,” Goldstein said. “This is a very referral-based business, so their ability to use social media and technological resources to grow businesses has been quite important.”
     
    Another part of the Fidelity survey of younger investors found that 78 percent credited technology with enhancing their relationship with financial advisers whereas only half of Baby Boomer investors surveyed agreed.
     
    Sonoma-based financial advisor Martin Weil, 65, said he recently decided to make a big branding move.
     
    “I’m using these technology tools a lot more than my peers,” said Weil, who added that he believes his fellow Baby Boomers hold a very different philosophy that goes against the grain of open sharing through social media. “This is mine, that’s yours. This is my information, that’s your information.”
     
    Weil is also trying out NerdWallet’s new tool titled “Ask an Advisor,” which launched in February. The platform allows financial advisors to interact and respond to consumer questions directly, as well as post introductory videos to showcase their personalities and hopefully build trust with potential clients.