Millennials tend to be more independent investors than members of the Gen X and Baby Boomer generations, but young 30-somethings who choose advisors are looking for the same qualities valued by older investors, according to research from Spectrem Group.
Millennials rank honesty and trustworthiness as the most important qualities in a personal financial advisor, Spectrem found. Additionally:
• About three-fourths are influenced by a strong referral or recommendation from a trusted associate.
• Fewer than 70% consider an advisor's website and online services or whether the professional offers products from a variety of companies.
• 21% seek an advisor with a presence on social media platforms such as Facebook and LinkedIn.
• Just over half look for an association with a well-known brand or company. Wealthier Millennials — those with a net worth of $1 million or more not including primary residence — give more weight to an advisor's link with a nationally known brand or company, while non-millionaire investors are somewhat more likely to consider transparency and an advisor's track record.
Spectrem’s demographic analysis gives weight to transparency and track record, and also considers the depth of products and services offered and the fees and commissions charged by an advisor.
