Download full report: http://ow.ly/uUSDY We all know about the increasing number of individual investors using social media to engage with their advisors. But do you know what kind of social media presence and behaviors are actually important to investors?

1. 2014
Individual Investors
Social Media Behavior Report

2. We all know about the increasing number of
individual investors using social media to
engage with their advisors: more than a one-
third[1] of financial advisors now use social
media for business purposes.
But do you know what kind of social media
presence and behaviors are actually
important to investors? Simply creating an
online profile is not enough to generate value.
In this study, we survey individual investors to
learn what they want to view on their advisors’
social media feeds and what kind of social
media behaviors will affect investors’ decisions
to choose advisors.
We hope this study will provide clear guidelines
to financial advisors who are on social media
but are still not clear about how to use and
leverage it.
[1] Source: FTI Consulting: Financial Advisors’ Use of Social Media Moves from Early Adoption to Mainstream!

3. • Nearly half of investors want to connect with their advisors on social
media but cannot find them or conclude their advisors are not on social
media
• Investors age 44 or younger are more likely to connect with their
advisors on social media compared to those over 45
• Emerging Affluent investors[2] use social media more than mainstream
and high net worth investors
• Investors who connect with their advisors on social media tend to be
satisfied with the level of access to their advisors
• Female investors are 11.5% more likely to connect with their advisors on
social media than male investors
• Investors do not care about their advisors’ personal life details on social
media
• The MOST important social media interaction with advisors, according
to investors, is sharing trending investments or personal finance news
• An advisor’s number of social media followers is the LEAST important
feature for investors when choosing advisors through social media
• An advisor’s availability to answer questions is the MOST important
feature for investors when choosing advisors through social media
KEY FINDINGS
[2] Emerging Affluent investors: Total value of investment between $100,000 - $999,999!

4. 87%
of
investors
surveyed
are
using
social
media
Among investors who are not use social
media, 46%
of them would be more
likely to use if they could communicate
in real-time with a financial advisor.
Meanwhile, 54% of them would not or
are not sure.
Q: Are you using social media?
Note: Social media platforms are part of our survey delivery channels, so this may generate some bias
Yes
87%
No
13%

5. Only
25.5%
of
investors
connect
with
their
advisors
through
social
media
Q: Do you connect with your
advisor on social media in any
form?
Note: All investors here are using social media and have advisors
Yes,%
25.50%
No,%
74.50%

6. Nearly
half
of
investors
want
to
connect
with
their
advisors
on
social
media
but
cannot
find
them
or
figure
they
are
not
on
social
media
Q: Why do you NOT connect with your
advisor(s) on social media?
49%
However, 38% of investors don’t find it
meaningful or relevant to connect with advisors on
social media.
Note: All investors here are using social media and have advisors
Others
13%
I,don’t,find,it,
relevant,or,
meaningful
38%
My,advisor,is,
not,using,
social,media
22%
I,cannot,find,
my,advisor,
on,social,
media
27%

7. Other
reasons
Q: Why do you NOT connect with your
advisor(s) on social media?
(45-­‐54
female)
I
feel
contact
through
email
or
phone
is
safer
Don't
use
social
media
for
my
inves?ng
(55-­‐64
female
)
I
don’t
use
social
media
for
money
or
business
decision
(55-­‐64
male
)
He
hasn't
reached
out
to
me
and
it
hasn't
occurred
to
me
to
reach
out
to
him
on
social
media
(65-­‐older
female
)
I
let
my
advisor
manage
with
a
long
term
focus
-­‐
I
email
when
need
to
but
otherwise
don't
connect.
(45-­‐54
female
)
I
call
him
directly
(35-­‐44
male
)
Note: All investors here are using social media and have advisors

8. 80.91%
93.48%
19%
6.52%
Yes No
Female
investors
use
social
media
more
than
male
investors
Q: Are you using social media?

9. Q: Do you connect with your
advisor on social media in any
form?
YES
32.3% 20.8%
Note: All investors here are using social media and have advisors
Female!investors!are!more!likely!than!men!to!connect!
with!their!advisors!on!social!media!–!11.5%*more*ac.ve*

10. Very%
Dissa*sfied
Dissa*sfied
Somewhat%
Dissa*sfied
Somewhat%
Sa*sfied
Sa*sfied
Very%Sa*sfied
Investors
connec?ng
with
advisors
on
social
media
tend
to
be
sa3sfied
with
the
level
of
access
to
their
advisors
through
that
plaForms
(63.6%)
Q: Are you satisfied with the level of access to your advisor through
social media?
MEAN
0%
18.2% 18.2%
22.7%
27.3%
13.6%

11. under&25
25*34
34*44
45*54
55*65
65&or&
older
Yes
No
Investors
age
44
or
younger
are
more
likely
to
connect
with
their
advisors
on
social
media
compared
to
those
over
45
Millennial investors (born after 1980 ) have
the highest social media usage rate (96.6%)
%
Q: Do you connect with your advisor on social
media in any form?
Note: All investors here are using social media and have advisors
0%50% 30.8% 40% 4.5% 25%

12. Mainstream
Emerging-Affluent
High-Net4Worth
Yes
No
Emerging
affluent
investors
are
more
likely
to
connect
with
their
advisors
on
social
media
compared
to
others
Q: Do you connect with your advisor on social
media in any form?
20% 28% 26%
Mainstream Less than $100,000
Emerging Affluent $100,000 - $999,999
High Net-Worth More than $999,999
Definition Total value of investment
Note: All investors here are using social media and have advisors
Emerging Affluent also have the
highest social media usage rates!
!Q: Are you using social media?!
High%Net)Worth
Emerging%Affluent
Mainstream
Yes$
88.60%&
90.22%&
77.78%&

13. Investors
don’t
care
about
their
advisor’s
personal
life
details
on
social
media
78% of investors who connect with their
advisors on social media stated that their
advisors’ personal life detail on social media
are not at all important.
We asked this question because sometimes
advisors cannot distinguish between having
personal interactions and sharing their
personal life on social media. Examples of
personal interactions include sharing opinions,
showing emotion and personality, and/or
taking interest in another person’s well-being.
However, this do not mean one needs to share
details of their personal life, such as travel
photos and new baby. In truth, investors don’t
care about those things at all.
Therefore, we suggest you separate your
personal social accounts from your business
accounts. Tips here.
Q. How would you like to communicate with your
advisor on social media? Rate their importance
Note: Results from above are all from investors who are connected with their advisors on social media.
78%
Not$at$all$
important
Slightly$
important
Moderately$
important
Very$important
Extremely$
important
Highlights$from$his/her$personal$life

14. The
most
important
interac?ons
that
maNer
to
investors
on
social
media
Trending
investment
or
personal
financial
news/topics
advisor
has
shared
Educa?onal
ar?cles
&
research
advisor
has
shared
Instant
access
to
research,
white
papers,
videos
he/she
recommends
Updates
on
my
investments
Ar?cles
and
research
the
advisor
has
wriHen
Types
of
investments
used
for
current
clients
Real-­‐?me
answers
to
my
ques?ons
A
private
“room”
online
to
discuss
topics
with
other
clients
or
peers
Types
of
investments
he/she
is
considering
or
monitoring
Note: Results from above are all from investors who are connected with their advisors on social media.
Note: detail in following pages
1.
2.
3.
Rank
4.
5.
6.
7.
8.
9.

15.
Other items investors told Finect that they do not want to view on their
advisor’s social media timeline include:
• “Promotion/sale pitch”
• “Personal discussion /chats/personal crap”
Note: Some investors stated that personal info on an advisor’s Facebook profiles is
acceptable but not on his/her professional social media accounts
The
least
important
interac?ons
with
advisors
on
social
media
Highlights
from
his/her
personal
life.
Example:
travel
photos
Share
Interes?ng
topics
not
related
to
finance.
Ex:
amusing
YouTube
videos
Online
events
with
my
advisor
and
other
clients
Business
informa?on
such
as
fee
structure,
offices,
special
exper?se
Note: Results from above are all from investors who are connected with their advisors on social media.
Note: detail in following pages
Rank

16. Point:
Not
at
all
important
=
-­‐2
Slightly
important
=
-­‐1
Moderately
important
=
0
Very
important
=
1
Extremely
important
=
2
Q:
How
would
you
like
to
communicate
with
your
advisor
on
social
media?
Rate
their
importance
Note: Results from above are all from investors who are connected with their advisors on social media.
Point
Statistical significance
according to one-way
ANOVA block design
Statistical significance
according to one-way
ANOVA block design
!35$ !30$ !25$ !20$ !15$ !10$ !5$ 0$ 5$ 10$ 15$ 20$
Highlights(from(his/her(personal(life.(Example:(travel(photos
Interes9ng(topics(not(related(to(finance.(Example:(Sharing(amusing(
YouTube(videos
Online(events(with(my(advisor(and(other(clients
Business(informa9on(such(as(fee(structure,(offices,(special(exper9se
Types(of(investments(he(is(considering(or(monitoring
A(private(“room”(online(to(discuss(topics(with(other(clients(or(peers
RealL9me(answers(to(my(ques9ons
Types(of(investments(used(for(current(clients
Ar9cles(and(research(the(advisor(has(wriNen
Updates(on(my(investments
Instant(access(to(research,(white(papers,(videos(he/she(recommends
Educa9onal(ar9cles(and(research(the(advisor(has(shared(with(others
Trending(investment(or(personal(financial(news/topics

17. TOP
5
social
media
features
investors
prefer
when
choosing
advisors
1.
The
advisor’s
availability
to
answer
ques?ons
Qs
A
2.
The
quality
of
financial
resources
advisors
shares
online
3.
The
level
of
knowledge
in
the
advisor’s
ar?cles/blogs/posts
The
tone/manner
in
which
they
engage
4.
The
advisor’s
online
profile
informa?on
such
as
professional
licenses,
educa?on
and
experience
5.
Note: detail in following pages

18. Least
important
social
media
features
when
choosing
an
advisor
The
number
of
advisor’s
followers
The
frequency
of
advisor’s
own
arHcles/blogs/posts
How
fast
advisor
responds/
replies
via
social
media
Note: While these features are the least important to investors, one should not conclude investors place no importance on them.
“Quality
>
Quan3ty.”
Note: detail in following pages

19. Q:
How
important
are
the
following
social
media
features
when
choosing
an
advisor?
Point:
Not
at
all
important
=
-­‐2
Slightly
important
=
-­‐1
Moderately
important
=
0
Very
important
=
1
Extremely
important
=
2
Point
Statistical significance
according to one-way
ANOVA block design
!150% !100% !50% 0% 50% 100% 150%
The$number$of$his/her$followers
The$frequency$of$his/her$own$ar6cles/blogs/posts
How$fast$they$respond/reply$via$social$media
The$advisor’s$online$profile$informa6on$such$as$
professional$licenses,$educa6on$and$experience
The$tone/manner$in$which$they$engage
The$level$of$knowledge$in$the$advisor’s$ar6cles/blogs/
posts
The$quality$of$financial$resources$he/she$shares$online
The$advisor’s$availability$to$answer$ques6ons

20. 1. Investment performance:
• “I would like to have access to all the
performance data of the accounts they control,
up to date and complete.” (35-44 male)
• “The most important thing is for the advisor to
disclose his/her own portfolio results and/or
credit score (FICO).” (35-44 male)
• “Proof! Ability of their picks to outperform the
market. Individuals are better than an advisor
can outperform the market - net fees. So just
show us.” (25-34 male)
• “Validating their performance and client
results.” (25-34 male)
• “I'd like to see a posting of the ROI performance
of their advice on a rolling quarterly basis. They
could create a model investment program and
make it public. Talk about transparency and
believability! Better yet, post their personal
portfolio of investments showing the return.” (65
or older male)
• “Track record.” (45-54 male)
• “Previous financial acumen w/ clients.” (45-54
male)
Addi?onal
behavior
or
feature
that
affect
investor’s
decision
when
choosing
an
advisor
(both
online
&
offline)

21. 2. Recommendation:
• “I prefer to be recommended by someone I trust to
an adviser.” (25-34 male)
• “If others are forwarding or liking their social
media posts.” (45-54 female)
• “Recommendation from friend or
colleague.” (35-44 male)
• “Prior relationship with someone I trust.” (65 or
older female)
• “Endorsements from others.” (35-44 male)
• “Offline reputation - I'd need a referral or
recommendation from a person I know in real
life.” (35-44 male)
Note: Testimonial and endorsement on social media might violate compliance regulations
3. Customer experience:
• “Excellent Customer Experience.” (35-44 female)
• “Patience, all due diligence on them is very
important.” (45-54 female)
4. Reputation:
• “Respect / following by other industry authorities
(Warren Buffet types, VCs, etc.).” (45-54 male)
• “Who follows him or her on social media.” (25- 34
male)
• “Appearance. I would choose someone who looks
successful, up to date on trends, and attractive over
someone who is not.” (25-35 female)
• “Online reviews.” (25- 34 male)
• “I want someone who shares beyond the obvious, and
does not always follow the herd.” (45-54 male)
Addi?onal
behavior
or
feature
that
affect
investor’s
decision
when
choosing
an
advisor
(both
online
&
offline)

22. 5. Services:
• “Fee disclosure on products.” (35-44 male)
6. Content that shows knowledge level:
• “Other subjects that he writes/blogs/shares.”
(35-44 female)
• “Relevant and substantive content.” (55-64 male)
7. Credibility:
• “FINRA status.” (55-64 female)
• “Years of experience.” (25-34 male)
• “Credentials and validation.” (45-54 male)
• “Education credentials.” (25-34 female)
• “Higher Education.” (45-54 male)
• “How is the advisor authenticated as an advisor?
Identity theft risk is kind of high there.” (35-44
female)
8. Other communication approaches:
• “Moderate availability to use Face Time and/or
Skype to interact during financial meetings to target
goals and discuss strategy and structure.”
(25-34 male)
• “Sharing relevant information - e.g. info and advice
that goes into further detail on your investments,
often nice if shared in video format because it's
easier to digest.” (35-44 female)
9. Privacy:
• “Privacy is key so prefer not to have too much made
public by my advisor.” (45-54 female)
• “Whether I'd want them seeing my personal profile.
(on social media)” (25-34 male)
• “I prefer that I can't be identified as a client of the
advisors. (on social media)” (25-34 male)
Addi?onal
behavior
or
feature
that
affect
an
investor’s
decision
when
choosing
an
advisor
(both
online
&
offline)

23. 10. Don’t believe is necessary on social media:
• “None. I feel like financial advisors should be more
concerned w/ managing clients' money, instead of
soliciting/marketing on social media.” (35-44 male)
• “I don't think social media would cause me to choose
an advisor. I'd need a lot more information,
particularly about past returns & their overall
process.” (25-34 male)
• “I wouldn't choose one through social media. I chose
mine through research and don't care that they are not
online much - we connect via email.” (45-54 female)
• “I would not choose an advisor through social media.
I might use social media to identify potential
advisors.” (45-54 male)
• “I am unlikely to choose an advisor through social
media. I would like to become an advisor, but early in
my journey.” (45-54 male)
Addi?onal
behavior
or
feature
that
affect
investor’s
decision
when
choosing
an
advisor
(both
online
&
offline)
I
would
not
choose
an
advisor
through
social
media.
I
might
use
social
media
to
iden3fy
poten3al
advisors.
(45-­‐54
male)

24. I
would
base
the
decision
off
a
referral
and
my
interview.
Social
Media
would
be
a
way
to
gain
a
picture
of
the
individual.
(35-­‐44
male)
Addi?onal
behavior
or
feature
that
affect
investor’s
decision
when
choosing
an
advisor
(both
online
&
offline)
Other information from investors:
• “LinkedIn’s company website and blog are all
useful but not sufficient for money
decision.” (55-64 male)
• “Twitter & Linked are important. Facebook is
not.” (45-54 male)
• “I would base the decision off a referral and
my interview. Social Media would be a way
to gain a picture of the individual.” (35-44
male)

25. ABOUT OUR RESPONDENTS
Survey duration (3 months):
Total respondents:
232
Completed rate:
80%
Gender:Total value of investment:
71%
29%
25% 25%
50%
Mainstream
Emerging Affluent
High Net-Worth
Currently investment products:
75#
149#
126#
77#
26#
27#
27#
87#
44#
136#
13#
Bonds!
Stocks!
Mutual Funds!
ETFs!
Commodities!
Hedge funds/alternative!
Futures and options!
Real estate!
College savings!
Retirement savings/accounts!
Impact/other thematic investing!

26. ABOUT OUR RESPONDENTS
Geographic:
Using social media:
Age range:
Individual
investors
invest in US
Author: Yi-Hsuan Chen, Passionate Marketer in the Financial
Industry and the Marketing Manager of Finect. She received the
Advanced Business Certificate (ABC) in Marketing Intelligence
during her MBA in the University of Connecticut.
Contact: Sherry.chen@finect.com
< 25! 25-34! 35-44! 45-54! 55-64! > 64 !
Yes,
87%
No,
13%

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