As the baby boomer generation is slowly passing their wealth on to younger generations, financial advisors need to adjust, or risk being left behind.
The generations following the baby boomers, known as X and Y, already control about $10 billion of the $18 billion wealth transfer expected to come. It should be noted that only about 17% of children stay with their parents’ financial advisor – all the more reason to catch them early. In order to keep this younger generation’s attention, advisors need to adjust to the change and do what they can to fully embrace newer generations – both as clients and employees. Reach this generation where they are – online. Tweet. Blog. Email. Get out on Facebook and garner great reviews for yourself and your practice. Or just give advice and make sure you engage in the conversation. Generation Y, which includes anyone born between 1977 through 1989, is constantly connected and they expect answers to their inquiries on a 24/7 basis.
Another way to reach the younger generation is to create low cost/less service options, i.e. working with medical students during their residencies. And don’t forget, you can always reach out to the younger generation through direct marketing or by developing close relationships with their parents – you never know who is a part of that 17%.
Once you’ve become comfortable with all of the above, don’t forget the most important thing: hire the younger generation to work in your practice, because this generation likes to work with their peers.
So to summarize: learn to make the younger generation feel comfortable in your practice, effectively work with technology & social media. It may also help to let employees set their own hours outside of the traditional 9-5 schedule.
What’s your take? Have you worked with the younger generation?