With age comes wisdom, but when it comes to their personal finances, Millionaires ages 65 and older are not as confident in their investment acumen as their younger counterparts.
Across all age segments, the oldest Millionaires are the least likely to credit themselves as very knowledgeable about financial products and investments, and the most likely to say they are only fairly knowledgeable but still with a great deal to learn. Across the generations, only Millennials are more likely to self-report being not very knowledgeable.
Our recent research indicate indicate that Millionaire investors ages 65 and up have been slower than younger generations to embrace the Internet and social media as a resource to attain financial knowledge. But that may be changing, and this increasing assimilation is an opportunity for financial advisors to further engage older clients.
Using Social Media and Mobile Technology in Financial Decisions reports the oldest Millionaire investors are behaving according to stereotype in comparison to younger households when it comes to their aversion to social media usage as a platform to receive financial and investment information. Whether it be Facebook, LinkedIn, Twitter or YouTube, these investors report the least likelihood they will consult these outlets for financial information.
But increasingly, older Millionaires are proving it’s never too late to embrace the Internet and mobile technology as a resource for financial information and activities. Currently, the largest percentage of Millionaire investors who follow the news via their devices are ages 65 and up (79 percent compared with 71 percent of Baby Boomers and 64 percent of Millennials ages 35 and under). Similarly, they are most likely to use technology to check their account information (90 percent), obtain market updates (68 percent).
Their usage of technology to correspond with a financial professional and to research information on financial products and services is on par with their younger counterparts
And while the percentages are smaller than for younger households, Millionaire households ages 65 and older do indicate that if they were to read a financial or investment blog or article, it would be on their financial provider or advisor’s website, other financial websites, or the websites of major financial media, such as Forbes or CNBC.
Not surprisingly, the eldest Millionaire investors are more old school than younger generations when it comes to the method for gathering financial information. More than half (55 percent) most prefer reading an article, followed by talking to someone in person.
Video is another opportunity to engage the eldest Millionaire investors. Three-in-ten Millionaire investors ages 65 and older report they watch videos on financial websites. This is comparable to younger Millionaire households. Their videos of choice on this topic are those that convey financial information (75 percent), followed by videos featuring a financial commentator (50 percent) and those covering current financial events (41 percent). They are least interested in videos related to stock tips (13 percent).