Social Media and High Net Worth Investors
It’s evident that financial and retirement plan advisors are wary of the social media platform. Some of the leading reasons include the compliance issues involved, the time it takes to manage social media, and simply getting started. Yet, the way that we communicate, both personally and professionally, has been changed forever with the advent of the Internet, email communication and social media.
“Social Media’s Growing Influence Among High Net Worth Investors,” a white paper produced by LinkedIn and Cogent Research, points to some compelling reasons for participating in this fast-moving communication channel.
While the research provided in the white paper surrounds the use of social platforms by high net worth investors, retirement plan advisors can review some interesting facts and figures to support and enhance their social media efforts. For example, 90% of high net worth investors participate in social media in some form.
Those participants, like many users of social media, use different social platforms to meet different needs. For example, it’s no surprise that Facebook leads the pack for personal uses, such as keeping up with friends and family, reconnecting with classmates and “friending” companies.
LinkedIn, however, is the trusted source for connecting with business colleagues, discussing business topics and networking for a job. And Twitter is the site of choice for staying up to date on news and events.
It will be an ongoing challenge for compliance departments and advisors to embrace (and monitor) the move to social media. But retirement plan advisors who are able to use the various platforms will be rewarded. Take note: Social media users are two times more likely to have an employer sponsored retirement account and slightly more likely to have a brokerage account than are non-users.
Click here to download “Social Media's Growing Influence Among High Net Worth Investors.”