SoFi Technologies, Inc., a leading digital personal finance company, released its first SoFi Invest Midyear Investor Report, surveying over 3,400 Americans on their investment sentiment and habits during the first half of 2023. The report highlights a mix of optimism and concern among investors, particularly among Generation X.
Most investors feel they are “falling behind” their ideal investment amount for their age. Gen X’ers express the most concern about not being as far along in their investing journey as they should be. Amidst a turbulent 2023 and over a year of rampant inflation, two-thirds of investors believe the economy is already in a recession. However, 72% remain optimistic about the markets, and 57% feel good about investing at this time.
The top five investment vehicles include Equities, Cryptocurrency, Mutual Funds, Bonds, and Exchange Traded Funds (ETFs). There’s a noticeable shift towards income-focused investments, even among younger generations like Gen Z and Millennials. Nearly half (45%) of investors have made an investment decision based on social media content. Platforms like TikTok, Facebook, Reddit, Instagram, and Twitter are popular sources for advice and education.
39% of investors use a robo-advisor, and 46% work with a professional CFP or CFA. Lack of representation in the financial advice industry is a concern, with 71% of investors stating they would be more likely to work with an advisor if they saw themselves reflected. Around a quarter of investors express interest in using AI for investing, believing it will make investing easier. However, nearly one-fifth prefer to wait for more evidence of success.
The report also highlights differences in investment behavior and preferences across generations, with younger investors more likely to discuss investments and prioritize income investments over growth.
Nicole Casperson of SoFi Invest commented on the findings, stating, “There is no ‘magic number’ for an investor’s portfolio that, once reached, will instantly signal their readiness for retirement or other major financial goals as everyone’s situation is different.” She emphasized the need for more tangible goal-setting and leveraging knowledge towards achieving specific goals.
The SoFi Invest Midyear Investing Report findings are based on an online survey conducted between June 30 and July 10, 2023, reflecting investors’ sentiment, investing trends, and habits at the halfway point of the year.
SoFi (NASDAQ: SOFI) is a member-centric, one-stop shop for digital financial services, helping over 6.2 million members with a full suite of financial products and services. The company operates across three business segments: Lending, Financial Services, and Technology Platform.
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