Facebook usage has dropped among high net worth investors but usage of LinkedIn and Twitter has increased, according to a Spectrem Group study.
According to a study of investors with a net worth between $5 million and $25 million Not Including Primary Residence, 46 percent are users of the social media site Facebook, but that is down from 52 percent in 2013. Usage of LinkedIn has increased from 40 percent to 45 percent and use of Twitter has jumped from 7 percent to 13 percent.
Younger high net worth investors are more frequent social media site users. Sixty-eight percent of high net worth investors under the age of 45 use Facebook, 64 percent use LinkedIn and 36 percent use Twitter.
Thirty percent of all high net worth investors do not access social media sites.
Among the investors who do not use social media, 58 percent say they see no value in the programs, 51 percent consider them to be a waste of time, and 47 percent worry about the privacy of their personal information when sent out via social media.
Ten percent say they don’t use social media because they have never learned how to, and 2 percent think the programs are hard to use.
Among the 13 percent of high net worth investors who use Twitter, the highest percentage (45 percent) use it to “follow” political commentators. Forty percent follow news commentators and 23 percent follow financial or investment commentators.
Six percent say they are actually able to follow their financial advisor on Twitter.
There is virtually no use of social media for financial purposes among high net worth investors. Likewise, there is almost no communication between high net worth investors and their financial advisors via social media, although the youngest segment of investors claim to do so. Ten percent of investors under the age of 45 say they have communicated with their financial advisor via LinkedIn and 5 percent said they have done so through Twitter.