Study Finds Young Investors Seek Financial Guidance On Charitable Planning

Amanda Cheesley Deputy Editor September 14, 2023

Study Finds Young Investors Seek Financial Guidance On Charitable Planning

US-based Fidelity Charitable, an independent public charity and grantmaker, has just released a young investor report, providing insights on the generational approach to financial advisors. 

A new study by US-based Fidelity Charitable finds that next-generation investors are seeking financial advisor guidance on charitable planning. 

According to the report, young investors not working with a financial advisor are twice as likely as Baby Boomers to prefer one who provides charitable planning – while 70 per cent of Millennial and Gen Z investors with an advisor are already having charitable conversations. 

Compared with their Baby Boomer+ counterparts (those age 58 and over), Generation Y and Z investors (ages 21 to 41) are more likely to seek guidance from financial advisors that goes beyond investment management. That includes charitable planning as an important goal, the study finds.

As their wealth and financial complexity grows, the number of advised young investors may continue to grow, too. And as Boomers+ age and continue to transfer their wealth, young investors can be a key growth opportunity for advisors, the report states.

The findings are based on data from a 2022 Fidelity Investor Insights survey of 2,490 investors aged 21 and above.  

It states that 59 per cent of Gen YZ agree that they want or expect their primary advisor to provide services beyond investment management. Advised younger investors are twice as likely as Boomers+ to view their advisor’s support in leaving a legacy that benefits the world as a valuable part of advice, it adds. 

The study also finds that Gen YZ investors are almost three times as likely as Boomers+ to say that their advisor is helping them achieve their charitable giving goals. Young investors who are not currently working with a financial advisor are also twice as likely as Boomers+ to say that they would prefer a financial advisor who can help with charitable giving goals, the firm said.  

“We find that younger generations view their relationship with their advisor as more than an avenue to generate financial returns,” Karla Valas, head of distribution at Fidelity Charitable, said. “Generations Y and Z, which now outnumber Boomers and control an increasing share of wealth, rely on advisors to guide them on how to strategically participate in charitable giving and use their financial means to make an impact in the world that aligns with their personal values.”

Fidelity Charitable’s mission is to grow the American tradition of philanthropy by providing programs that make charitable giving accessible, simple, and effective.

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