Fifty-three percent of millennials in a new survey said they managed their own investments and intended to continue doing so, YCharts, a financial data and investment research platform, reported Thursday.
Forty-one percent of these do-it-yourselfers had a self-directed brokerage account, while just 11% had an advisor-directed one. Nearly one-third said they used investing apps or robo-advisors.
Only 30% of millennials in the survey who did not use an advisor said they were likely to do so in the future.
“The business model of many of today’s financial advisors is under attack,” Sean Brown, chief executive and president at YCharts, said in a statement. “With the $30 trillion wealth transfer underway and financial advisors being asked to justify their fees, it’s critical to understand the needs of the millennial generation.”
YCharts conducted an online survey in the third quarter among 600 American participants, 478 of whom were millennials.
The survey results appeared to give the lie to the notion that millennials are financially irresponsible.
The data showed that 44% saved more than 15% of their pretax income, while 53% were saving at least 12%.
Thirty-one percent of millennial respondents said they were somewhat or very nervous about whether they were saving enough, but even the top savers had misapprehensions about how quickly their savings level would lead them to seven-figure wealth.
Sixty-five percent said they expected to reach that level of wealth by age 45 or sooner.
Those aspirations notwithstanding, 37% of millennials in the study reported having between $25,000 and $100,000 in savings and investments, while 24% had more than $100,000.
YCharts said in the statement that given this shortfall from expectations, some financial guidance, goal-setting and a realistic strategy to reach those goals could go a long way for millennials and their portfolios.