Cisco recently conducted a study of under-50 year old wealthy investors. The report, Winning the Battle for the Wealthy Investor, offers many valuable insights for financial professionals and firms. While some of the questions are framed in such a way that Cisco can use the answers to sell product, I think many of the investor sentiments are still very enlightening.
I encourage you to listen to the audio slide presentation embedded below. It offers a succinct summary of the key points.
But if you don’t have a minute to spare, here are the five main takeaways:
1. Under-50 investors lack confidence in the market and the value offered by the current advisory model. Some choose not to have advisors at all, while a considerable number of others are spreading their investments across multiple advisors.
2. Under-50 investors spend more time on investments and demand more interactions with all of their business advisors.
3. Under-50 investors are very comfortable with technology and are open to technologically-enhanced communications with advisors. They see this as a key differentiator among firms and advisors.
4. Under-50 investors show high degree of interest in joining investor social media communities.
5. Under-50 investors indicate considerably greater willingness to move investments in order to receive better service from advisors and firms.
As wealth is transferred to this generation of investors over the coming years, they will become an increasingly important factor in the success and failure of many firms and advisors. Forward-looking financial professionals recognize that crucial changes in how they do business will be required in order to win in this marketplace.