More Older Investors Are Getting Rid of Advisers and Managing Their Own Funds Online

According to InvestmentNews, nearly half of investors in their fifties are now self-directed when it comes to their investments. This means that their main provider for investment advice is either a discount brokerage or a robo-adviser. 40% of investors in the 60 and over age group also are calling themselves self-directed.

The reasons for why older investors are gravitating toward the Internet to manage their own investments vary. For some, it can be a cost saver, compared to paying human advisers their numerous fees. There is also now a greater mistrust of financial representatives in the wake of the 2008 economic crisis. Also, getting everything handled online and without having to go out and meet with an actual adviser for advice or updates is proving very convenient for some.

InvestmentNews offers up as one example a 76-year-old investor, Lois Mayerson. She and her now 81-year-old husband fired their traditional advisers two decades ago. She said they started managing their own money because their financial advisers were losing the funds faster than the couple could deposit the cash into their accounts. Another investor, 58-year-old Joseph Giuliano, works with Betterment, an online financial adviser. Giuliano says that he and his wife have about $500,000 in a Betterment account. He believes that the only reason to have an adviser is when making bigger picture plans about taxes, college spending, insurance, and estate planning.

However, according to the J.D. Power 2014 U.S. Self-Directed Investor Satisfaction Study, even though many self-directed investors-especially the younger ones-want to manage their money online this hasn’t eliminated their desire to establish strong ties with their broker-dealer and get more guidance. The study found that although self-directed investors’ primarily ask for advice by making their inquiries online, they still want quality answers and support.

Our senior investor fraud lawyers represent elderly investors that have sustained losses because they were the victim of financial fraud. Contact Shepherd Smith Edwards and Kantas, LTD LLP today.

Best Firms for Self-Directed Investors: J.D. Power-2014,
J.D. Power 2014 U.S. Self-Directed Investor Satisfaction Study

Older investors turn to the web to manage assets, InvestmentNews, May 25, 2014

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FINRA Panel Tells Ameriprise to Pay Elderly Couple $1.7M Over Unsuitable Real Estate Investments, Stockbroker Fraud Blog, May 5, 2014

Elder Financial Fraud: One Out of Five Seniors Victimized, Reports WSJ, Stockbroker Fraud Blog, January 20, 2014

CTFC Issues Its First Whistleblower Award, Institutional Investor Securities Blog, May 30, 2014

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