My latest Financial Post blog has just been published, which you can retrieve by clicking on the highlighted headline: Boomers slow to embrace online investing but. surprise, it’s not a technology thing.
According to a TD Bank Group survey titled Too shy to DIY, 79% of Canadian baby boomers use the Internet for banking but only a paltry 16% are online do-it-yourself (DIY) investors. The poll of 2,000 Canadian adults was conducted late in July.
Since the Boomers have embraced most aspects of the Internet and are just as addicted to smartphones as Millennials and Generation X, it’s clear (as the headline notes) that “it’s not a technology thing.”
Rather, the main reason for low Boomer use of online investing is lack of investment knowledge: TD says 79% of those surveyed don’t manage their money online because they simply don’t know enough about investing, while 22% say they don’t have enough time to invest on their own.
When I asked Jeff Beck, Associate Vice President at TD Direct Investing, why the disparity he replied with this email:
“The gap between Boomers who bank online and those who invest online can be attributed to the fact that many say they are unfamiliar or uncomfortable with online investing tools. There’s a misperception that online investing is a complicated, time-consuming activity. That’s why TD Direct Investing offers a range of educational resources, tools and support to help investors get off to a great start, whether their goal is active trading, long-term investing, or both.”
So too do the other major discount brokerages as far as I’m aware: TD is one of the discount brokerages our family uses and there’s certainly no dearth of information on investing there or indeed most other major financial institutions.
As a boomer myself I was a tad surprised by the findings. Continue Reading…