Millennials are facing multiple priorities when it comes to financial planning, opening new doors for advisors
A recent Nielsen investor survey shows Canadian millennials (those aged 18-34) have more conflicting priorities for their limited funds than any other generation.
“These findings confirm that Canadians are juggling multiple priorities. They are overwhelmed and in many cases don't know where to start when it comes to planning for the long term,” said Blake C. Goldring, chairman and CEO of AGF Management Limited. “I believe it's the responsibility of financial firms and the investment management industry to educate and inform investors.”
The numbers from the survey show that when it comes to their top three priorities, 43% are saving to own a home, 21% are paying/saving for their children's education and 15% are taking care of elderly parents.
However, while Canadian investors appreciate advice and are willing to pay for it, a number still feel they need at least $25,000 in savings to make it worthwhile to engage the services of a professional financial advisor – preferring to “Do It Yourself” until they reach that mark.
The survey found that of the Canadian investors who are considered DIY:
- Close to half have never met with or worked with a financial advisor;
- One in five said they do not currently work with a financial advisor due to insufficient funds for investing;
- One in five would consider using a financial advisor when they have enough money saved up or when they feel like they are no longer successfully investing on their own; and
- Are three times more likely to have been disappointed or lost faith in their investments in the past.
Information that investment advisors should take to heart, said Goldring.
“The purpose of this survey was to understand how Canadian investors differ, focusing on generations, gender and those with a financial advisor versus those without," he said. “We wanted to find out what is top of mind when it comes to investing and what we can do to help Canadian investors reach their investment goals.”
“These findings confirm that Canadians are juggling multiple priorities. They are overwhelmed and in many cases don't know where to start when it comes to planning for the long term,” said Blake C. Goldring, chairman and CEO of AGF Management Limited. “I believe it's the responsibility of financial firms and the investment management industry to educate and inform investors.”
The numbers from the survey show that when it comes to their top three priorities, 43% are saving to own a home, 21% are paying/saving for their children's education and 15% are taking care of elderly parents.
However, while Canadian investors appreciate advice and are willing to pay for it, a number still feel they need at least $25,000 in savings to make it worthwhile to engage the services of a professional financial advisor – preferring to “Do It Yourself” until they reach that mark.
The survey found that of the Canadian investors who are considered DIY:
- Close to half have never met with or worked with a financial advisor;
- One in five said they do not currently work with a financial advisor due to insufficient funds for investing;
- One in five would consider using a financial advisor when they have enough money saved up or when they feel like they are no longer successfully investing on their own; and
- Are three times more likely to have been disappointed or lost faith in their investments in the past.
Information that investment advisors should take to heart, said Goldring.
“The purpose of this survey was to understand how Canadian investors differ, focusing on generations, gender and those with a financial advisor versus those without," he said. “We wanted to find out what is top of mind when it comes to investing and what we can do to help Canadian investors reach their investment goals.”
