While Affluent investors cite broadening their knowledge about financial products and investments as one of the primary benefits of working with an advisor, they take the initiative on seeking out information.
Affluent investors are keen on financial literacy and knowledge, and as wealth level increases, so does the importance they place on these attributes. In a 2012 Millionaire Corner survey, 88 percent of those with at least $1 million net worth said that financial knowledge was “extremely important” or “important” to them, compared with 82 percent of those with a net worth between $500,000 and $1 million and 74 percent of those with a net worth of less than $100,000.
While they cite broadening their knowledge about financial products and investments as one of the primary benefits of working with an advisor, Affluent investors take the initiative on seeking out information. Four-in-ten of Millionaires surveyed by Spectrem Millionaire Corner said they have done more research about investments than they have done in the past. Millionaires under the age of 45 are especially motivated to raise their knowledge level. More than half (53 percent) report conducting more research about investments.
Not surprisingly, investment research among Affluent investors increases with wealth level as well as among those who may only consult with a financial advisor for a specific need, but still make all investment decisions themselves.
Nineteen percent of Millionaire investors we surveyed said they have recently subscribed to additional financial publications and websites. Again, it is the younger Millionaires under the age of 45 (28 percent) and those who are self-directed investors 22 percent) who are taking the lead on seeking out material for independent research (28 percent).
Affluent investors are not wedded to traditional platforms to receive their financial news. A majority of Millionaires (55 percent) use their Mac or PC to access information But they haven’t yet completely written off newspapers, either. Six-in-ten affluent investors have a newspaper subscription, a recent Spectrem’s Millionaire Corner survey found.
Newspaper readership increases with net worth, the survey found. Four-in-ten affluent investors with a net worth of less than $100,000 have a newspaper subscription compared with 75 percent of those with at least $5 million. Not surprisingly, those who are most confident about their financial knowledge are the most likely to have a newspaper subscription (67 percent vs. 55 percent of those who say they have little or no financial knowledge).
Age is a factor in where Affluent investors prefer to get their financial news. Millennials were the most likely to “like” Facebook as a news source, another Millionaire Corner survey found. More than half said they log onto the social network for news and information.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.