More millennial investors want to manage their own money with do-it-yourself investing
Millennial investors have jumped into the stock market in a big way over the past year with about two million new trading accounts being opened across the country.
A recent survey finds many of them feel they don't need the assistance of a financial advisor and plan to do their investing on their own.
“Canadians are no different then investors all around the world trying to find new ways to grow their money, especially since the start of the pandemic," said Nicole McKnight with Finder.com which conducted the survey.
The survey found about three million Canadians plan to stop working with a financial advisor this year and many who want to become do-it-yourself investors are between the ages of 24 and 40 years old.
The survey found 34 per cent of millennials plan to stop working with a financial advisor or are seriously considering it.
Another 54 per cent said they want to save money on fees, 42 per cent want more control over their money and 25 per cent feel knowledgeable about investing.
Andrew Kriegler, president of the Investment Industry Regulatory Organization of Canada (IIROC) said “we've seen a couple of million new do-it-yourself accounts opened over the course of the last year."
Kriegler said do-it-yourself investing can be a good strategy for some, but he cautions that investors should also be aware of the risks and be careful where they get their information from.
IIROC said investors need to develop a strategy and do their research. Some millennials have been investing in cryptocurrencies and stocks that have been promoted on the website Reddit.
“When you are looking at information that comes from, for example, social media, it's very difficult to tell whether that information has been checked, audited or has anything behind it or not or whether it’s somebody’s opinion," said Kriegler.
McKnight added, “I think it's important not to jump on a bandwagon, but really do a lot of research on a company before investing in it."
Kriegler said that while some investors are doing it themselves, others are using an advisor and many are doing a combination of the two.
Kriegler said it's important for younger generations to learn about money and investing, because many may not have a company pension plan so they will need to save for their retirement years.
CTVNews.ca Top Stories
What is whooping cough and should Canadians be concerned as Europe declares outbreak?
There is currently a whooping cough epidemic in Europe, with 10 times as many cases compared to the previous two years. While an outbreak has not been declared nationwide in Canada, whooping cough is regularly detected in the country.
Ontario Provincial Police arrest 64 suspects in child sexual exploitation investigation
Ontario Provincial Police say 64 suspects are facing a combined 348 charges in connection with a series of child sexual exploitation investigations that spanned the province.
AstraZeneca says it will withdraw COVID-19 vaccine globally as demand dips
AstraZeneca said on Tuesday it had initiated the worldwide withdrawal of its COVID-19 vaccine due to a 'surplus of available updated vaccines' since the pandemic.
'Summer of discontent': Federal unions vow to fight new 3-day a week office mandate
Federal unions are launching legal challenges and encouraging public sector workers to file "tens of thousands" of grievances over the new mandate requiring federal workers to return to the office at least three days a week in the fall.
Toronto police seek suspect vehicle after security guard shot outside Drake's mansion
Toronto police are seeking help from the public as they continue to investigate a shooting that seriously injured a security guard outside rapper Drake's mansion.
'Ozempic babies': Reports of surprise pregnancies raise new questions about weight loss drugs
Numerous women have shared stories of 'Ozempic babies' on social media. But the joy some experience in discovering pregnancies may come with anxiety about the unknowns.
OPINION What King Charles' schedule being too 'full' to accommodate son suggests
Prince Harry, the Duke of Sussex, has made headlines with his recent arrival in the U.K., this time to celebrate all things Invictus. But upon the prince landing in the U.K., we have already had confirmation that King Charles III won't have time to see his youngest son during his brief visit.
Seafood, eat food: Calgary Stampede releases Midway menu
The Calgary Stampede has released its menu of sweet, salty and spicy treats available on the Midway for the Greatest Outdoor Show on Earth.
Boy Scouts of America is rebranding. Here's why they've changed their name
After more than a century, Boy Scouts of America is rebranding as Scouting America, another major shakeup for an organization that once proudly resisted change.