Maybe not today and maybe not tomorrow, but soon, Millionaire investors will be looking more toward social media platforms as a tool for financial activities, according to a new wealth level study conducted by Spectrem’s Millionaire Corner.
The initiative to use social media as a personal finance resource is coming primarily from the youngest investors, who generally belong to a more proficient cluster of technology user, which comprises 29 percent of Millionaires surveyed. Nearly three-in-ten Millionaires (28 percent) are cautious users, meaning they are most concerned about the safety of their financial information and the most likely to keep hard copy statements and back-ups to cloud.
Just over one-fourth (26 percent) of Millionaire investors surveyed are categorized as the least technological. They are generally older investors with the most conservative risk tolerance, who are most likely to use PCs or Macs, but not smartphones and tablets. The smallest percentage (17 percent) are (immobile), whose usage of technology is most limited to visiting websites.
Millennial Millionaires (under the age of 35) responded most enthusiastically when asked about their future usage of social media for financial purposes. Nearly four-in-ten (38 percent) said that their selection of a new financial advisor would hinge partly on how much they use social media to communicate with customers. This is just over five times higher than Millionaire respondents overall. Twenty-one percent (vs. 5 percent of Millionaires overall) said they would be more interested in a financial advisor who used some type of social media platform to communicate with clients.
Similarly, 38 percent of young Millionaires (vs. a mere 4 percent of Millionaires overall) said they are more inclined to use a financial product or service that have seen advertised or discussed on social media platforms such as Facebook and LinkedIn. Twenty-nine percent (vs. just 5 percent of Millionaires overall) anticipate using Facebook, LinkedIn and Twitter more often over the next year in the financial decisions they make.
Of the social media platforms, LinkedIn, the career networking site, is the site most likely to be used by Millionaires under the age of 45 to find an advisor (44 percent). Millionaire Millennials expressed the highest likelihood of using Facebook to find a financial advisor, while Gen Xers said they would most likely used LinkedIn and Twitter,
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.