It’s no secret for financial advisors today that cracking the millennial client base is a key part of their work. Every day, U.S. millennials inherit major sums of money and are unsure of how to steward their new assets. That does not include preexisting financial plans — or lack thereof — which would benefit from financial advice. A new report from financial services company Equitable breaks down where millennials’ heads are at, and how best to reach them.
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The study from Equitable, PEAK 35TM: Guiding a New Generation of Wealth, explores how millennials see financial planning right now. Per a press release from the firm, just one out of four surveyed millennials “feel confident” in their ability to make smart financial decisions.
What’s more, the study points advisors to millennials reaching “Peak 35.” That metric parallels the four million baby boomers retiring each year at 65, “Peak 65.” Those millennials, part of the so-called “Great Wealth Transfer,” make up part of the younger generation set to inherit $30–$140 trillion.
“This historic transfer of wealth is about more than passing down assets, it’s about passing down values,” said Gerald Grant III, CFP® and financial advisor with Equitable Advisors. “Engaging the entire family in honest — and sometimes uncomfortable — conversations lays the foundation for truly lasting relationships. Once trust and transparency are established, a holistic financial plan that reflects the family’s goals can take shape and put everyone on the same path forward.”
How, then, should advisors approach millennials poised to inherit major assets? The study emphasizes millennials’ desire for a personalized style of financial advice. The demographic grew up swamped by social media and craves in person interaction. Nearly seven in 10 millennials shared that they would prefer working with an advisor to a digital-only experience.
What’s more, more than two thirds of those same surveyed millennials have discussed future inheritance with their parents. Almost nine out of 10, 87%, say that a prior familiar relationship with an advisor is an important hiring consideration.
Taking all of that together, advisors can do a few things to connect with potential millennial clients. Already working with their parents or relatives gets advisors a foot in the door. For the rest, though, making millennials feel seen and heard can help them stand out.
Digital suites and technology may more easily impress other generations. However, millennials want personalized service and guidance through a complicated inheritance experience. Many younger clients may not have the paperwork they need to get started. Others may have strongly held opinions that need addressing. The study found that a massive 93% of millennial respondents want an advisor whose values and goals align with their own. Furthermore, advisors could benefit from education to refresh their knowledge on inheritance rules and regulations.
“It’s clear millennials value trusted advice as their financial lives grow more complex. However, financial planning is about more than numbers on a page for this generation. It’s about building a personalized roadmap for the future, grounded in purpose and shaped by their values and family dynamics, so they can look ahead with confidence,” said Nick Lane, president of Equitable.
“Financial advisors who understand this mindset will be best positioned to connect with millennial clients, future‑proof their practices and support them through every life stage,” he added.
Originally published on Advisor Perspectives
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