Financial advisers who are looking to attract younger clients had better sharpen their tweeting skills.
A new survey of adults 22 to 34 shows that just 10% of the so-called Generation Y considers professional investment advisers the most valuable source of financial news and information.
Of this group, about 21% most trust their friends, colleagues and relatives for financial news. The same percentage rely most on TV and radio talk shows, while 20% depend most on news-related websites.
Just 11% rely most on newspapers, according to the survey, in which Maritz Inc. screened 963 adults for TD Ameritrade Holding Corp. Of the total, 211 were Gen Yers.
The survey also found that a third of Gen Yers consider social media a valuable source of information about the financial markets and the economy, compared with 27% for Generation X, 21% for baby boomers and 14% of people born in or before 1930.
“Advisers haven't built much of a relationship yet with Gen Yers or Gen Xers,” said Stuart Rubinstein, managing director of client engagement at TD Ameritrade, the online brokerage. “As they start to reach out to that audience, advisers will have to think about how this group communicates.”
Mr. Rubinstein recommends making “friends” with clients' children on Facebook to keep the adviser's name in front of them.
Also, the younger generations learn about money management in school, so advisers should look for ways of participating in classrooms, Mr. Rubinstein said.
The survey also found that Generation Y is becoming financially responsible at an earlier age.
According to the survey, nearly half of Gen Yers learned about money and personal finance at 12 or younger. That figure fell to 35% for baby boomers and 32% for people 80 or older.
