“Being technologically savvy is very important to young clients,” Gerend said.
Bridgewater has increased its use of technology including a new client portal that gives clients easier access to financial statements. It also has a blog to increase communication with the public. Finally, it is using video conferencing more so advisors can meet with clients regardless of where they are.
Another way firms are positioning themselves to serve the younger generation is through younger advisors. Gerend said that the average aga of an advisory client is around 31 and advisory firms are staffing their offices with advisors of a similar age. The goal is that a younger advisor can relate to the client better and understand how best to utilize certain technology.
What makes millennials particularly appealing for advisors is the wealth that they could command in the near future. It is anticipated that over the next 10 years, more than $50 trillion will transfer from the older generation to the younger ones. With that transfer looming many in the older generations want to be sure that their finances are secure for future generations.
To accomplish this, they have begun including their children in meetings with the advisor. Stollberger said her firm has seen a huge uptick in the number of clients who have brought in their children. Doing this allows advisors to forge trust and a relationship at a young age.
“You can grow with your clients over time,” Gerend said. “You can have a real impact on these people’s lives.”
Given the pending transfer of assets and their concerns about their financial futures, Gerend said that there is a real opportunity there for advisors to help the younger generations in particular millennials and even Generation Z. He added that if advisors can find a way to work with these generations and help them navigate these turbulent financial times, they have the potential to make a real difference in the lives of that generation.
“This is a real moment now for advisors to make an impact on their clients’ lives,” he said.