How The Rich Use Social Media For Financial Decisions

March 14, 2013
The wealthy are spending a lot of time on social media networks to acquire and share information on how they can wisely invest and grow their money. Studies show how the rich are looking for new technologies that will keep them close to their financial advisors so they can make the necessary adjustments that will reduce finance-related problems and boost income. Big and small investors are relying on the likes of Twitter and LinkedIn to guide their decisions. By directly engaging with the sources of information, investors become more active in the process and get the full facts about a potential move.

The Rich and Technologically Savvy

Research by Cogent, headed by Remy Domler Morrison, was conducted to determine how the wealthy relied on social media to make vital decisions regarding their financial strategies and investments. According to the study, social media has dominated a huge part of how businesses and firms work and make plans. Financial firms such as Charles Schwab, John Hancock, Fidelity Investments, Wells Fargo, Janus, ING, USAA, American Funds, Vanguard and T. Rowe Price were shown to rely much on social media now when getting information that will be helpful in the way they make investments. The survey by the Cogent research showed that 7 out of 10 wealthy investors changed their investment strategies and approaches because of the information they acquired through social media. About one-third of wealthy investors rely on social media sites like Twitter, Facebook and LinkedIn to get tips on finance and how to allocate their investments. The Cogent Research LLC survey followed 4,000 investors who had over $100,000 in assets that can be invested. About 41% of the wealthy indicated that they usually found investment guidelines and information on social media platforms even though these weren?t the main reason they visited. One-third of the wealthy investors indicated that social media is very helpful in helping them communicate and get expert advice from their mentors. Clients also communicate more effectively with companies through social media, which is why more companies and financial groups are creating online accounts. A similar study by SEI also showed how the wealthy prefer getting the information regarding investments with huge potential. However, the study also found how they wish to improve how online advisers actually guide them into making the right investment choices. 3,477 individuals around the world with an average net worth of almost $2 million were observed by The Futurewealth Report: Helpful Investment Technologies. The report monitored how technology is becoming very useful as a means of expanding and sharing the expertise of financial advisors.

The Role of Social Media

The goal is to integrate technology with the main services offered by wealth and financial managers and advisors. Many wealthy individuals and companies around the world are looking for more convenient and accurate ways to safeguard their investible assets. Here's a list of hashtags on the financial services industry. Social media is the most ideal and reliable tool that will improve the way experts communicate with clients. The wealthy can easily access information, as well as acquire and share information through the various social media tools and features. Experts can start conversations and activities that will keep their clients updated. News and current events can also be presented on social media so that investors can allocate their investments properly. Social media engagement will improve the way planning and actual investments are made. Wealth managers and financial advisors can use social media to communicate with clients and other experts around the globe, with the goal to determine how clients in specific places can make the right decision. Because of the many advantages that social media provides, the wealthy and their wealth managers can work more efficiently and increase the likelihood of success in the years to come.

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