You do not have to choose between Milennials and high-net-worth clients

March 26, 2018 by Sean Marus

A young wealthy couple searches online for financial advisors.

about the author:

Sean Marus

Product marketing specialist

With years of experience in product marketing and content generation in the financial services industry, Sean is committed to providing informative and impactful content to financial professionals and the clients they serve.

Many advisors today are facing the same dilemma: Do they double down on their high-net-worth (HNW) book of business or shift gears and start trying to appeal to Millennials to sow the seeds of their future? Drowned in the noise, however, is that advisors may not have to make this choice as they are often one in the same.

A shift in the perception of Millennials

Millennials are seen by some as the cheap generation. They are killing (insert one of a thousand industries here). They spend money on frivolities rather than necessities. They are saddled with debt and are destined to never come out of it.

Contrary to popular belief, however, Millennials may not be the money-starved, wallet-clutching cohort that they are painted to be. In fact, a new study from USA Today indicates that 1 in 6 Millennials now have $100,000 or more in investable assets qualifying them as HNW. Additionally, nearly half of Millennials have at least $15,000 saved. When also considering that Millennials do not want robo-advice, the market for financial advising is likely higher than most would assume.

All of the aforementioned information fundamentally shifts the paradigm in how advisors will cater their business in 2018 and beyond. Client segmentation techniques may not be as cut-and-dried as advisors had once thought.

Capturing all types of business

Now is the time to reconsider how you market to prospects and how you communicate with your client base. Take this as a reminder to reconnect with your clients and determine where they are in their lives. No two clients are the same, and their situations may vary significantly even within a generational cohort.

Many Millennials qualify as HNW individuals. The future of your business can also be what drives your present operations. At a time when an estimated $30 trillion in wealth is set to transfer to younger generations, laying the groundwork with younger clients can best prepare you to understand their holistic financial picture and help them with this windfall.

To learn how leveraging Advicent technology can help your firm stay relevant in a rapidly evolving financial services industry, click here.