How Financial Advisors Can Prepare for The Great Wealth Transfer

Jimmy Lee |

Did you know that Baby boomers are one of the wealthiest generations and are soon expected to pass their wealth to their millennial children?

  • The current average net worth of millennials sits at approximately $8k
  • This dynamic could change rapidly as millennials are set to hold five times as much wealth as they have today and inherit a whopping $68 trillion+ by 2030

Millennials are diverse and consist of the following groups that may be under served by advisors because they do not fit the traditional client profile.

  • High earners but not rich yet (HENRY’s)/high income and high debt
  • Entrepreneurs and business owners
  • Early career accumulators who are experiencing big life events (i.e. marriage and children)

Millennials are interested in learning more about financial planning. Advisors should start connecting with them!

  • Add existing clients’ adult children to blog and newsletter communication and invite them to client events
  • Connect on LinkedIn and share relevant content on items such as student loans, buying a home and financial considerations when starting a family
  • If existing clients approve, consider inviting their adult children to their financial planning meetings
  • You could also offer to chat confidentially with them about their own finances

How can advisors serve these millennial clients and prepare for the great wealth transfer?

Through WCG’s Lifetime Financial Fitness (LFF) service model!

  • Highlights of this service model:
    • Pay an ongoing monthly fee for financial planning, just like a Netflix subscription or a gym membership
    • This model allows advisors to serve clients that do not fit the traditional assets under management service model, but need financial planning expertise
    • Leverage lifetime financial fitness to start building the next generation of clients