A new survey from Cisco confirms that the young like to DIY, even when it comes to handling their money. Cisco interviewed folks under 50 with more than $500,000 in investable funds about how they manage their wealth and investments and found that increasing, they’re turning to Facebook and the Internet instead of a financial manager sitting behind a huge oak desk.
More than 25 percent of the demographic had switched financial advisors in the last two years (compared to 7 percent of older respondents), and a third planned to leave their current adviser within the next year (versus 8 percent). Why the exodus? They think they can do better on their own.
Of course, “on their own” means something different than just blindly guessing. Social networks make it easy for investors to read about what other people are doing and post about their own experiments, gains, and losses. More than half of the young and wealthy demographic use social networks like Facebook, Twitter, the Yahoo investor forums, and Seeking Alpha for financial and investing advice. Two-thirds said they are interested in joining new online investor communities.
I’m young, but not wealthy, but I already know that I have a much different approach to financial management than my parents and their peers. I did find a personal accountant last year, and I know that I can approach him with any financial questions I have, but it’s easier and quicker for me to just turn to the Internet.
Much of my financial education has come from sites like Bundle, The Street and Learnvest. Nearly everything I’ve ever wanted to know about debt counseling I’ve learned from Bundle’s NFCC Ask a Debt Expert board. As I enter new phases of my financial life, these are the places where I’ll look for advice.
Where do you go for financial advice?
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Photo by Franco Bouly, via Flickr