Young people – namely millennials – love technology. They don’t care any more about personal service. They’d rather interact with a screen than a person. In particular, when it comes to their finances, they’d rather work with a “robo-advisor” than a human advisor. Right?
Well, not so fast. A recent study illustrates otherwise. The summary article posed this question: “For tech-savvy millennials eager to grow their portfolio and their bank account, robo-advisors seem like a match made in heaven, right?” It answered its own question: “Wrong. We found that, when it comes to their hard-earned money, millennials still want a human-being handling it.”
When you think about the need for your employees to receive the human touch on matters relating to their finances, keep in mind the following findings from a survey of millennials:
- Traditional advisors are nearly two times more prevalent among millennials than robo-advisors.
- 62% think robos are more likely to lose their money than human advisors.
- 69% think humans can get them better returns on their investments than robos.
- 52% think robos are more likely to make mistakes managing their money.
Despite technology being a major selling point for robo-advisors, only 12% of respondents who use robo-advisors indicated this as a benefit.
This serves as a good reminder of the perils of painting with a broad brush across large groups of employees. It appears that even with a greater dependence on technology, people continue to want to work with people, particularly when it comes to money.
Matthew loves to write. He also loves to think, though he’s probably a better writer than a thinker. He does not like to be on camera or in videos. This blog will allow him to write, challenge his ability to think, and, from time to time, test him with video blog entries.
He has a unique blend of legal and practical experience that helps us to serve our clients well. On the one hand, he has more than 12 years of private legal practice experience focusing exclusively on employee benefits, including time as a partner in an employee benefits boutique where he has represented clients in front of the DOL and IRS. On the other hand, he holds his FINRA Series 7 and 66 registrations and serves as the Director of ERISA Services for Qualified Plan Advisors.
Matthew likes to stay active. He provides fiduciary training, Investment Policy Statement design, and vendor oversight to our clients. He is an active member of the Employee Benefits Committee of the American Bar Association Tax Section, serving as Chair of the Defined Contribution Plans Subcommittee. He also has been appointed to the IRS TE/GE Gulf States Council and is a frequent speaker on regulatory developments, fiduciary responsibilities, and retirement readiness.
Most importantly, he stays active with his family. His wife, Laura, is the founder of REbeL, Inc., a not-for-profit organization. His three young boys are mixed up in far too many sports, and they enjoy traveling, watching college football, running with Dad, and rooting for the Huskers.
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