Here's How Many People Use a Financial Advisor to Manage Their Portfolio, per ComparisonAdviser Survey

REDMOND, Wash., April 29, 2024 (Newswire.com) - In its recent study, ComparisonAdviser found that just 9% of investors across various age groups choose to manage their portfolio with the assistance of a financial advisor. The goal of the article is to investigate how people tend to manage their investments, especially concerning where they're at in their lives. This provides insight into when a financial advisor may become a necessity and how often people seek out a professional for assistance. Click this link to access the article: https://comparisonadviser.com/news-and-studies/how-people-manage-their-portfolio

As people age, their investment goals and the complexity of their finances may shift. For this reason, someone in their 60s might require the help of a financial advisor, whereas someone in their 30s may not. To assess when an individual may need a financial advisor and what client tendencies mean for the portfolio management industry, ComparisonAdviser conducted a survey that asked respondents whether they managed their investments:

• By themselves.
• With a financial advisor.
• With a robo-advisor.
• Via an IRA or 401(k).

According to the study, 47% of the total respondents say they currently manage their investments on their own. However, when one considers specific age groups, categorized by those in their 20s, 30s, 40s, 50s, and 60 plus, the results come a bit more into focus. Of note is that 42% of people in their 30s opt for a robo-advisor, compared to just 3% choosing a human professional. Per Sean Canonica, the study's author, "The popularity of robo-advisors for younger generations, while likely being because of their affordability and ease-of-use, may also be emblematic of this age group's comfortability with technology."

Conversely, 11% of people in their 50s and 21% of those aged 60 and over say they use a financial advisor to manage their investments. The study cites an already-present familiarity with in-person interaction and the complexity of finances as potential reasons for people in this age group to use an advisor for investment management.

Finally, the study analyzes what the popularity of robo-advice for younger generations means for the future of the financial advisor industry. As people become more accustomed to technology, automated portfolio managers may eventually become much more prevalent in the market. However, the study does point out that "human financial advisors retain an edge" because robo-advisors "aren't as adept" at providing other services, such as financial planning, which people may need as they age.

Source: ComparisonAdviser