5 Ways Advisors Can Add Next-Gen Clients, Grow Assets
Value: Planning for traditional retirement may not be what young investors are prioritizing the most. Addressing their top goals will be key to delivering value to them, and they’ll choose an advisor who understands the nuance between early retirement and financial freedom.
Additionally, helping to find tangible ways to tackle goals such as paying down student debt or buying a home allows advisors to connect and problem-solve with their clients.
Educate: Lastly, young investors are witnessing innovation at a staggering pace and need a guide to navigate different investment ideas and products. An advisor can teach them, as younger clients seek more information on innovative investment ideas such as cryptocurrencies and ESG.
Other Steps to Take
For advisors who seek to delve into this emerging market and position their businesses for long-term success, there are several steps that can be taken.
Start at the beginning and define an appropriate target client.
To ensure advisors are on the right path for their firm, they should first create an ideal young client profile that fits their business strategy. Consider characteristics such as savings habits, inheritance potential, future earning potential, and demand for service.
Engage with the children of current clients.
The young investors that advisors need could simply be their clients’ grown children. Fidelity’s research shows that advisors have reached out to only 13% of clients’ children.
By providing a second opinion on their financial situation or offering to be a resource as they navigate a particular life event, advisors can open the door to new relationships with their clients’ adult children.
Educate clients and prospects.
Whether in person or online, providing financial education that demonstrates an individualized approach and your understanding of planning for financial independence might be just the thing.
Go digital.
Millennials and Gen Z rely on social media for research and advice much more than previous generations. Increasing your presence on social media platforms with educational tools and advice could be key to reaching the right audience.
Younger investors are actively seeking tailored financial advice. If firms cannot meet their unique needs, they will find someone who can — and take their wealth with them.
Anand Sekhar is vice president of Practice Management & Consulting, Fidelity Institutional, which provides clearing, custody, or other brokerage services through National Financial Services LLC or Fidelity Brokerage Services LLC.
(Image: Adobe Stock)
