CHICAGO, January 17th, 2018- A new Spectrem Group Research Report, Millennial and Generation X Investors, reveals that Millennial and Gen X investors are significantly more attuned to socially responsible Investing than their older counterparts. In fact, more than half of Millennial investors (52 percent) see the social responsibility of their investments as an important selection criteria, compared with less than 30 percent of WWII-era investors and 42 percent of Gen X investors.
The Spectrem study also reveals that almost a third of Millennial investors (29 percent) expect their financial advisor to reward them with gifts or other favors in exchange for their business. By contrast, less than one-in-ten Gen X investors (7 percent) expect these types of rewards from their advisors. Of those expressing this sentiment, the highest preference is for a meal, tickets to a sporting event, socials or happy hours. Interestingly, more than one in five (22 percent) Gen X investors expecting a reward from their advisor would be interested in a gift for their pet. Advisors would be well-served to understand that these types of perks can be important ways to acknowledge the value of younger clientele.
This new crop of young investors also stands to benefit greatly from inherited wealth. Over two-thirds (67 percent) of the wealthiest Millennial investors ($5 to $25 million in net worth) credit inheritance and family connections to their wealth creation. And as these investors age, they are even more likely to benefit from inheritance as older family members pass away.
The study also reveals that Millennial investors are significantly more likely than their Gen X counterparts to favor texting or instant messaging as a way of communicating with their advisor, vs. e-mail or voice-to-voice phone calls. More than two-thirds (68 percent) of Millennial investors report they would be comfortable texting their financial advisor, compared to less than one-third of Gen X investors (32 percent).
In stark contrast with older generations, Millennial and Gen X investors are much more likely to make joint financial decisions with their spouses. Nearly three-quarters of Millennial investors (71 percent) make joint financial decisions with their partners, compared with less than two-thirds of Gen X investors (63 percent). Just over half of Baby Boomer (54 percent) and World War II (53 percent) investors make joint financial decisions with their partners.
For an Executive Summary of the Millennial and Generation X Investors study or to schedule an interview with George H. Walper, Jr., President of Spectrem Group, contact David Pickard at firstname.lastname@example.org, 708-434-5006.
The Marketing to Millennials and Generation X Investors report is based on research conducted by Spectrem Group with 200 Millennial and 200 Gen X investors who have a net worth (not including primary residence) above $100,00 and below $25 million.
Additionally, the Millennial and Generation X research was supplemented with research from Spectrem’s ongoing research with wealthy Baby Boomers and WWII investors.
About Spectrem Group: Spectrem Group (www.spectrem.com) strategically analyzes its ongoing primary research with investors to assist financial providers and advisors in understanding the Voice of the Investor.