Younger investors more likely to drop advisers, embrace DIY investing
BNN Bloomberg
Canadians are increasingly embracing do-it-yourself (DIY) investing, and younger investors appear to be more eager than others to go it alone.
TORONTO -- Canadians are increasingly embracing do-it-yourself (DIY) investing, and younger investors appear to be more eager than others to go it alone.
According to research firm Investor Economics, Canadians opened more than 2.3 million new self-directed investment accounts in 2020, up from 846,000 in 2019.
However, the appetite for professional financial advice breaks sharply along generational lines. A May 2021 report from global comparison site Finder.com found that one-third of millennials said they planned to stop working with their financial adviser or were seriously contemplating it, compared with 21 per cent of generation X and 11 per cent of baby boomers.
Some financial experts are concerned that in the age of meme stocks, cryptocurrencies and the current bull market, young people may be overlooking the value of advice and urge DIY investors to exercise caution.
Jason Pereira, partner at Toronto-based Woodgate Financial, explained that since many young people are priced out of buying real estate in major cities, there's a level of despondency that's led to risky investments.
``A lot of [DIYers] feel stuck because they can't do the next thing to get ahead, so they're buying lottery tickets [in the form of investments],'' Pereira said.
