Where do most people go for financial advice? Nearly one-third of all households get help from financial advisors. That’s part of the answer from the Federal Reserve Board, as shown in the chart below.
However, what I found most interesting is that:
- Friends and business contacts are the biggest source (41%) that people turn to for investment information; and,
- Online services are the source that has seen the greatest growth. More than one-third of households (35%) now turn to online sources for investment decisions, which is up dramatically since 2001.
Given those numbers, you would expect that social media and online tools—including what the financial industry refers to as online “robo” advisors—will be a big part of what reshapes where people go for financial advice in the future.
The financial industry, however, still has a way to go to figure these things out. That’s certainly the impression I got from attending the recent conference of the National Association of Personal Financial Advisors (NAPFA).
So as I look to find a place in financial advising, my takeaway is that I need to look for a new way, a new approach. One that takes into account new habits and new technology.
That brings me back to the question: Where do you go for financial advice and information? What would you like to see develop among the new online alternatives? I’ll be looking for the answers. Your answers would help, so please feel free to leave your comments below or email me at Frank@MacroSavvy.com.
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