Zinger Key Points
- 27% of self-guided investors say they are likely to use a (human) financial advisor in the next year.
- That share goes up to 37% among self-directed Millennial and Gen Z investors.
- This presents a huge opportunity for advisors to capture a new, younger market.
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Self-guided, DIY approaches to investing are more popular than ever, spurred on by the rise in stock screeners, trading platforms, AI, and investing data sites. But according to a new survey, 27% of them are likely to use a (human) financial advisor in the next year.
That number grows to 37% when considering only DIY investors in the Millennial and Gen Z generations, according to J.D. Power’s 2025 U.S. Investor Satisfaction Study.
The same study shows that investors under 40 account for only 11% of clients at wealth management firms, 20% at retirement firms, 26% at banks, and 42% at fintech firms.
This presents a huge opportunity for financial advisors to capture new clients, and especially younger, self-directed ones that promise a longer relationship.
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The same study also points out several hurdles that advisors must overcome to capture these clients. These investors are used to AI, fintech, and other digital investing solutions. Therefore, ease of use and doing business with a financial advisor is crucial. In the study, DIY investors ranked that as the fourth-most important criteria. Access to digital channels also came in the top seven.
More important even than that was trust, product offerings, and people. In other words, relying on brand or name recognition isn’t enough. Financial advisors must offer products and services that are easy to use, engender trust, and work well with the self-guided investment platforms and strategies the investors are already using.
Also, advisors need to be respectful of the investors’ choices, and be able to fit in with their DIY approach. For example, they should offer services outside the core investment space. After all, the study reveals that 41% of DIY investors chose that approach because they consider finances and investments simple enough to self-manage. The same share do it because they enjoy self-managing finances and investments.
Providing estate, tax, and other related services can help win over these clients without clashing with their stated preferences. A more personalized approach is needed to win over this DIY crowd.
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