Favoring human advice over online systemsNews added by Benefits Pro on August 18, 2014

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Joined: September 07, 2011

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By Dan Cook

Even modest investors want concierge service when it comes to planting their hard-earned financial seeds.

A survey by Gallup of folks with $10,000 or more in investments reveals that 44 percent choose a dedicated financial advisor to handle their affairs. Just one in five use a financial services website to manage most of their investment decision-making.

Other trends from the survey of 1,000-plus investors:
  • 35 percent use a financial advisory firm and speak to a live person, but don't have one go-to advisor;
  • 29 percent use a friend or family member;
  • Women are more likely (46 percent) to use a dedicated advisor than men (41 percent);
  • Women are also more likely (32 percent) to use a friend or family member than men (26 percent);
  • Men are more likely (25 percent) to rely upon a financial website than women (14 percent);
  • Retirees are more likely (53 percent) to use a dedicated financial advisor than non-retirees (40 percent);
Those with more than $100,000 in investments are more likely (53 percent) to use a dedicated financial advisor than those with less than $100,000 (32 percent).

Only 11 percent of retirees say they depend upon a financial website for investment guidance.

The big takeaways Gallup took away from the survey, done in conjunction with Wells Fargo, were that most people do get advice from somewhere before they invest (80 percent), and that confidence in online investment services is still a bit shaky.

“Despite lots of buzz about online financial tools that allow users to submit their portfolios to computer algorithms, most investors still feel more comfortable involving a human, whether in the form of a dedicated personal adviser or a financial advisory firm that gives them access to live counselors in a call center,” the report concluded.

Originally published on BenefitsPro.com
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