Mental and practical roadblocks prevent most from using online investment platforms
The technology gap between millennials and baby boomers is generally smaller than expected, but when it comes to online investing, the older generation still has cold feet.
In a new survey, TD bank found that 50% of Canadian baby boomers spend more than 15 hours weekly on the internet, as compared to 58% of millennials. Respondents from the older generation were reportedly comfortable going online to read the news (77%), shop (66%), keep in touch with friends and family (64%), and do their banking (79%).
However, of those who go online for banking purposes, only 16% said they manage their investments over the web. “There's a misperception that investing is this complicated, time-consuming activity," said Jeff Beck, associate vice president at TD Direct Investing.
Among the responding boomers who don’t invest online, 66% said they would if they had someone to ask about their investment activity, and 42% said they’d feel more comfortable with additional information about investing online. For that reason, Beck said, TD offers users of its self-directed investing platform constant access to investment representatives, as well as hundreds of tutorials.
While boomers mostly said they use the internet because it’s convenient (94%) and easy (84%), 79% of them reported not managing their portfolios online because they don’t know enough about it, and 22% said they don’t have time.
Among the minority of boomers who overcame the obstacles to online investing, 62% said they enjoy the flexibility of investing when they want, where they want. Using mobile phones, computers, or tablets, self-directed investors can quickly and conveniently access information on the markets, their portfolio holdings, and investment performance.
For more of Wealth Professional's latest industry news, click here.
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In a new survey, TD bank found that 50% of Canadian baby boomers spend more than 15 hours weekly on the internet, as compared to 58% of millennials. Respondents from the older generation were reportedly comfortable going online to read the news (77%), shop (66%), keep in touch with friends and family (64%), and do their banking (79%).
However, of those who go online for banking purposes, only 16% said they manage their investments over the web. “There's a misperception that investing is this complicated, time-consuming activity," said Jeff Beck, associate vice president at TD Direct Investing.
Among the responding boomers who don’t invest online, 66% said they would if they had someone to ask about their investment activity, and 42% said they’d feel more comfortable with additional information about investing online. For that reason, Beck said, TD offers users of its self-directed investing platform constant access to investment representatives, as well as hundreds of tutorials.
While boomers mostly said they use the internet because it’s convenient (94%) and easy (84%), 79% of them reported not managing their portfolios online because they don’t know enough about it, and 22% said they don’t have time.
Among the minority of boomers who overcame the obstacles to online investing, 62% said they enjoy the flexibility of investing when they want, where they want. Using mobile phones, computers, or tablets, self-directed investors can quickly and conveniently access information on the markets, their portfolio holdings, and investment performance.
For more of Wealth Professional's latest industry news, click here.
Related stories:
Are advisors ready to embrace the robos?
Wealth advisors still in demand from self-directed investors
