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The Great Wealth Transfer Will Soon Be Upon Us. Are Advisors Ready?

Is being a multigenerational firm the key to survival or more effort than it’s worth?

A story by Investment News piqued our interest because of this staggering figure: “Over the next 30 years, an epic $30 trillion will be passed down from baby boomers to Generation X to millennials.”

It was followed by this eye-opening stat: 66-percent of children fire their parents’ financial advisor after they receive an inheritance.

It almost seems like a foregone conclusion for some. According to Investment News data, close to 20-percent of advisors never meet with any of their clients’ children. More than half (54-percent) meet less than once a year. The story even says “Many advisers said they don't know how to appeal to clients' kids, or they believe that connection is not worth the effort.”

Choice Of A New Generation?

There is a generational component at play, with younger tech savvy clients expecting a different level of service than their parents received. For example, a decades long professional relationship with the parents could have been low-maintenance, whereas their adult child coming into wealth for the first time might require a lot of hand-holding. What do you think will happen if the multigenerational client isn’t satisfied? In a world where people rant online when their coffee isn’t served properly, how do you think they’d respond when millions of dollars are involved?

Apart from providing an excellent service, loyalty and referrals are keys to longevity in business. When someone needs a medical specialist, an attorney, or a contractor, they almost always turn to friends, family, and colleagues. They might even post a message on Facebook asking their network for a referral. Is this something you strive to achieve or is it not worth the effort?

Final Thoughts & Questions To Consider

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The positive takeaway for those looking to bridge the generation gap is to treat the whole family as a client, rather than dealing with couples or individuals. If everyone’s in the fold then there’s a trusted relationship.

The stark reality takeaway: If an “event-driven crisis,” like a death or accident, is the first time you initiate contact with the rest of the family, it’s too late.

Here at Everplans we’re interested in capturing real voices and sound advice from experienced experts so we can help and educate other professionals and our platform users. If you can offer any insight into the following areas, don’t hesitate to get in touch with us:

  • Is being multigenerational something you embrace at your firm?
  • Do you think technology, traditional techniques, or a mix of the two is the solution for keeping a client’s heirs on your financial roster?

[Source: Investment News]

  • Money Organization
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