Local NBC News In San Francisco Reports Baby-Boomer Financial Planners Are Losing To Younger Advisors Because Of Social Media And Technology

Thursday, June 13, 2013 11:56
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Local NBC News In San Francisco Reports Baby-Boomer Financial Planners Are Losing To Younger Advisors Because Of Social Media And Technology

Tags: competitors | Social Media

A local NBC TV station in San Francisco on Tuesday aired a news segment reporting baby-boomer financial advisors—those age 48 and up—are being competitively outdone by younger advisors since the financial crisis because of their use of technology ans social media.  

 
“When it comes to managing your money, who do you trust,” says an anchorman introducing the segment. “Someone who is older and, perhaps, wiser? Not so much.”
 
”New research shows it’s everyone but baby boomers doing well in the business of financial planning,” says the news anchor introducing the segment.

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The reporter, Stephanie Chuang, cites a Fidelity survey of 1,200 financial advisors to say that younger advisors, since the 2008 financial crisis have been more successful in regaining investor trust and building new business. Chuang says the younger advisors manage $8 million more than their baby-boomer competitors and get three times as many referrals.
 
Why?
 
For the answer, NBC turned to a spokesman from NerdWallet, San Francisco-based company with an app for do-it-yourself money management and that also offers a way for advisors to use their platform.
 
A NerdWallet spokesman says younger advisors have been more successful because of their “commitment to technology.”
 
 “Advance use of social media gives advisors the edge,” Goldstein says, citing tools like Skype and Google Hangouts. “The ability to use social media and technology to grow their business has been quite impressive.”
 
The report goes on to cover NerdWallet’s “ask an advisor” feature where advisors can showcase their skills.
 

 

Comments (2)

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Andrew - Thanks for covering this interview and our Ask an Advisor platform. If any advisors are interested in joining, feel free to contact me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

This new free tool is aimed at helping advisors:
- Enhance their web presence;
- Demonstrate their expertise;
- Reach new media outlets; and,
- Connect with new prospective clients

Since our launch in February, the Ask an Advisor platform has grown enormously. With over 100 advisors signed-up across the country and well over 300 responses to our users' questions, the platform has begun to fulfill its goals of providing a place for consumers to receive professional answers to their financial questions while also streamlining their search for an advisor ideally suited to their unique needs.
This e-mail address is being protected from spambots. You need JavaScript enabled to view it , June 13, 2013
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FamaFiduciary
Andy,
Thanks for reporting on this. Well, I am definitely a baby boomer advisor, and I understand the basis for the argument here. I checked out the site (NerdWallet) and while I believe their intention is commendable, and it is a socially conscious service to many, advisors still have to be cautious about trying to give specific advice to the questioner. There are several reasons why caution may be warranted. First, as we all know and have heard again and again, everyone's situation is unique. Providing a generic answer to someone whose financial situation you really don't know could be risky, not just for the person giving the advice (potential liability for misinterpreted or flat-out wrong advice) but for the person receiving it. I looked at several questions and answers and could see that the person answering was usually credentialed as CFP, CFA, etc. While that is good to know, it doesn't mean the advice is applicable to the exact situation faced by the questioner. There is a reason why we enter into a advisor/client relationship (in writing) and this is one of the reasons. It strikes me as similar to the concept of medical advice being dispensed (no pun intended) online and how it might help some people, but could also potentially hurt other based on misinformation, misdiagnosis, misunderstanding, etc. Sorry to be such a spoil sport on this one! I'll have to blame my legal training and education.
FamaFiduciary , June 13, 2013

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