As it turns out, millennial investors aren’t choosing robo-advisor platforms over financial advisors as readily as originally projected. Still, only 13% of the adult children of affluent aging clients are choosing to work with their parent’s financial advisor.* So what’s the issue?
Simply put, advisors aren’t effectively connecting with this generation of clients. This is a big missed opportunity. The ‘Great Wealth Transfer’, as financial experts and journalists refer to it, between the boomer generation and the younger generations is set to happen over the next decade. This will be the largest generational transfer of wealth in history.*
In my years of working with advisors and their teams, I have yet to meet anyone that isn’t time-starved. By leveraging technology and approaching these potential clients strategically, there is opportunity to foster these relationships today to plant a seed for the future. These are some of the most effective ways that I am seeing advisors adapt and what you can do today to position yourself as a potential advisor for these inheritors.
These usually start with the need to communicate estate wishes from one generation to the next. These can be difficult conversations for families to have without a professional present and by facilitating and organizing these conversations, you will not only deepen your relationship with the parents but also be able to introduce yourself to their children in a professional setting.
This allows you to add value at the times in their lives that are the most important. Say your client mentions that their 35-year-old daughter and son-in-law are looking at buying a house. You can send them a piece of content on the steps to buying a house, ensuring they are familiar with the entire process. By leveraging content sources that are relatable to this generation, you can be assured that what you send is both helpful and accurate.
Some examples would be to implement online calendar scheduling programs such as Calendly or making sure that investment information can be accessed online. The more digitally integrated your offering is, the more you start to differentiate yourself from just “their parent’s advisor”. Some teams are even hiring someone, usually a millennial themselves, to head up this division of their business. This hire becomes the key contact as they can relate more as a peer and professional to these clients.
This is a given with your high net worth clients but also extremely important with their children. Their wealth planning needs may not be as complex but you can still add value. The major life events of millennials, just to name a few, are buying a house, getting married and having children. These are all times where they will need your support and guidance to make sure they are aware of all key wealth planning opportunities that arise.
Communicating effectively and impactfully with your clients' children is always a win-win. You create an opportunity for these future assets to stay in your book, while strengthening your relationships with your top clients ensuring they stay engaged and invested for years to come.
HeyAdvisor is a digital content library for Canadian financial advisors. We provide infographics and videos that can easily be integrated with email and social media. Review our plans here.