Too many advisors are chasing baby boomers rather than focusing on younger generations, says a survey released Monday by D.A. Davidson & Co.’s Individual Investor Group.
This points to a huge opportunity that many advisors may be overlooking, says D.A. Davidson, an investment firm based in Great Falls, Mont.
Fifty-nine percent of advisors are most focused on attracting baby boomers, people age 52 to 70, the survey says, while 37 percent say they want to attract Gen Xers, age 34 to 52, and 2 percent say they are primarily focused on attracting millennials, aged 18 to 33.
“Advisors have done a terrific job helping baby boomers reach their goals while navigating the financial markets,” says Michael Purpura, president of D.A. Davidson & Co.’s Individual Investor Group. “As we look to the future, we have a tremendous opportunity to advise Gen Xers and millennials for decades to come.”
To target younger generations, the method advisors use to communicate with them may have to change, the survey says. A majority of advisors targeting baby boomers says personal meetings are the best way to communicate, while a substantial number of those trying to attract younger clients say e-mails and texts are the best way to communicate.
“As advisors begin to focus more on appealing to and attracting younger clients, it’s critical to consider how they want to be engaged,” says Andrew Crowell, vice chairman of the Individual Investor Group. “It comes as no surprise that a 40-year-old Gen Xer may prefer communicating with their advisor in a different way than a 65-year-old boomer. It’s up to advisors to personalize the experience for their clients.”