As investors from Gen X and Gen Y continue to make up a growing portion of the affluent population, more of them are turning to social media for their personal finance and investing needs.
According to a new Cogent Research report, Social Media’s Impact on Personal Finance and Investing, three-quarters of affluent investors in the U.S. are now regularly using some form of social media. Regular use is defined as more than once a month.
The data showed that over one-third of all affluent investors (44% and 70% of Gen X and Y investors, respectively) are using social media specifically for personal finance and investing purposes.
About 70% of investors have reallocated investments, or began or altered relationships with investment providers or other financial firms based on content found on social media, according to the data.
The report’s respondents used a combination of financial company blogs, Facebook, LinkedIn, Twitter and YouTube.
The Cambridge, Mass.-based Cogent said above all, “social media consumption brings out the well-rounded researcher in investors.”
Social media increases investors’ reliance on traditional sources of investment advisory such as financial advisers, news articles, and firm representatives, which in turn are increasingly scrutinized by information and commentary that investors seek and share on social media networks, the report read.