Note: This article is courtesy of Iris.xyz
By Nicole Anglace
For many people my age, stocks are a foreign concept. Unless their portfolio was set up by a parent or family member, chances are, it doesn’t exist. Oddly enough, many millennials, particularly females, hold an antiquated notion that investing in stocks is a characteristic of old, white men. A recent study also found that a large portion of the millennials generation see investing as a confusing venture. Given the recent proliferation of robo-advisors, perhaps these beliefs may be challenged and come to an end.
Recently, a plethora of ETF-based financial technology platforms have emerged, allowing even low income earners to dabble in investments.
How does this affect Advisors like you?
If you want to take on Millennials as clients, you may want to act fast. Robo-advisors pose a significant threat to your market share, particularly within the millennial sector.
For a millennial seeking to invest without the aid of an advisor, options like Acorns with minimal fees are gaining significant traction. Those of us still under the age of 24, or those who are currently enrolled as students with access to an .edu email, can sign up and access this resource free of charge.
Without these considerations, the fees are either $12 a year (for accounts under $5k) or 0.25% annually for accounts over $5k. 16 months after its launch, the app boasted over 700,000 accounts, ~75% of which were started by investors between the ages of 18 and 34.
Acorns is not the only fintech development causing a stir on the internet. Rumors suggest that a popular app may soon launch its own robo-advisor technology that will deliver an investing platform straight through its traditional mobile interface. Which platform? Snapchat.