Why financial advisers need to worry about technology addiction

Why financial advisers need to worry about technology addiction
Give yourself the gift of unplugging or risk opening yourself up to unhealthy habits.
SEP 01, 2016
As financial advisers, we rely on technology almost nonstop. And, from recent reading, the more we use technology, the more risk we place on ourselves emotionally and physically. When catching up on some reading, two random articles from very different publications caught my attention because they were 1) interesting in their own right and 2) even more interesting when viewed together. The Wall Street Journal asked the question "Is technology making people less sociable?" Today people are using technology not only for work and entertainment, they are also using it for social purposes. Many avenues enable this form of communication: email, text, Facebook, Twitter, Snapchat, Instagram and more. With the ability to connect with multitudes of people instantaneously, it would seem that technology is making us more social. However, based on research by Larry Rosen, professor of psychology at California State Dominguez Hills, technology is distracting us from real relationships. The difference between live and virtual communication equates to the variance between "bonding and superficial bridging." As people spend more time checking their cell phones, responding to alerts and focusing on a computer screen, there is less opportunity and capacity for true friendships and connection. The second article was from The Huffington Post titled "The Likely Cause of Addiction Has Been Discovered, and It Is Not What You Think." According to author Johann Heri, what we currently think about addiction is totally wrong. Our society tends to blame addiction on the drugs themselves or the victim: If the drug supply (or cigarette sales or liquor availability) is cut off, then we won't have addicts. Alternatively, if the addicts had the moral capacity to avoid drugs in the first place, their bodies would not have become addicted. On his three-and-a-half year stream of interviews and research, Mr. Heri discovered something surprising: Many "addicts" could rid themselves of drugs permanently when their life circumstances changed. For example, about 20% of Vietnam soldiers became addicted to heroin during their service. Yet, 95% of these veterans simply stopped using once they returned to the U.S. Conversely, when the nicotine patch was introduced, many thought that it would cure cigarette addiction. Unfortunately, it clearly has not. So, if the cause of addiction is not the drug, what is? Without going into all of the research, Mr. Heri believes it is an environment where the addict feels isolated and disconnected. People who feel connected to the world and others tend to not become addicts. And, those who are addicted have a much greater chance of giving up their drugs when their circumstances change and personal connections increase. Viewing these two articles as one leads to an obvious warning for financial advisers and any professional spending more time with technology than people: Give yourself the gift of unplugging or risk opening yourself up to isolation and unhealthy habits — or worse. Sheryl Rowling is head of rebalancing solutions at Morningstar Inc. and principal at Rowling & Associates. She considers herself a non-techie user of technology.

Latest News

RIA M&A stays brisk in first quarter with record pace of dealmaking
RIA M&A stays brisk in first quarter with record pace of dealmaking

Driven by robust transaction activity amid market turbulence and increased focus on billion-dollar plus targets, Echelon Partners expects another all-time high in 2025.

New York Dems push for return of tax on stock sales
New York Dems push for return of tax on stock sales

The looming threat of federal funding cuts to state and local governments has lawmakers weighing a levy that was phased out in 1981.

Human Interest and Income Lab streamline workflows for retirement-focused advisors
Human Interest and Income Lab streamline workflows for retirement-focused advisors

The fintech firms' new tools and integrations address pain points in overseeing investment lineups, account monitoring, and more.

Buy or sell Canada? Wealth managers watch carefully as Canadians head to the polls
Buy or sell Canada? Wealth managers watch carefully as Canadians head to the polls

Canadian stocks are on a roll in 2025 as the country prepares to name a new Prime Minister.

Carson, Lido strengthen RIA networks with bicoastal deals
Carson, Lido strengthen RIA networks with bicoastal deals

Carson is expanding one of its relationships in Florida while Lido Advisors adds an $870 million practice in Silicon Valley.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.