Almost two-thirds of investors 65 and older are on social media sites
Almost two-thirds of investors 65 years of age and older have social media accounts, and half of them are on Facebook, a Spectrem’s Millionaire Corner study revealed.
LinkedIn and YouTube are the next most popular social media sites for the 65 and older investor, but there aren’t many of them who spend a large portion of their day or week on the sites, the study showed.
The study surveyed older investors in three wealth segments: Mass Affluent ($100,000 to $1 million in net worth not including primary residence), Millionaire ($1 million to $5 million NIPR) and Ultra High Net Worth ($5 million to $25 million NIPR).
The use of social media by financial providers and advisors is still regulated, keeping its usage for those purposes limited, but social media is a communication tool that is not going away. Also, while social media usage is far more prevalent among young investors, advisor sand providers do need to recognize that the older investors are using social media.
Among Millionaires, 65 percent of the 65 and over segment use some form of social media, and 52 percent are on Facebook. Of those that are on Facebook, 29 percent go on multiple times in a week and when they go on, 56 percent of them actually share information rather than just read what is posted.
Facebook usage is less among the UHNW, but LinkedIn usage is far greater in that group. Thirty-five percent of 65-plus use LinkedIn, which is considered a professional website by most users (where Facebook is considered a social website.)
While usage of Twitter, GooglePlus and Pinterest is well below 10 percent, usage of YouTube is relatively high. Among UHNW investors, 23 percent use YouTube.
Twitter usage is also unusual among the 65 and older group. Like Facebook, Twitter is generally perceived to be a social site. Only 5 percent of older Millionaires have Twitter pages, but among those, 23 percent go on Twitter once a day and 23 percent go on multiple times during the week. Another 23 percent say they visit Twitter at least twice a day, and that nearly matches the 25 percent who go on Facebook at least twice a day.
The older Twitter audience is the most likely to follow political or news commentators and far less likely to follow movie stars and athletes.
Despite regulations, there is some financial information to be culled from social media sites, and older investors say they are for more likely to use Facebook as a source for investor information than the average (60 percent to 47 percent among Millionaires).
Unfortunately for the social media sites, 85 percent of older Ultra High Net Worth users say they have no intention of increasing their social media appearances, and among the 37 percent who do not currently use social media, 86 percent of them say they have no intention of starting.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.