Older financial advisors, who make up a majority of the industry, would do well to listen to the ideas their younger counterparts bring to the table, especially if they want to attract next-generation clients, according to advisor Lori Crilley.

“We tend to just want to think of what we know,” Crilley, of Life Changing Financial Services in Phoenix, said this week at the BNY Mellon/Pershing Insite 2021 conference. “It’s important to listen to your partners. It’s important to get the younger advisors in there so that you can understand what their philosophies are and look at the ideas they would have for younger clients."

Crilley, who started in the business 10 years after a career as a realtor, focuses on a holistic approach when working with clients. “It’s not just about the money," she said. “It’s about their families.” Crilley said she tries to understand her clients’ family dynamics. She said the goal is to get their kids into investing and educating them about financial planning.

To strengthen the focus on multigenerational client relationships, Crilley hired a former client, Katelin Kalik, a few years ago because she is looking toward a succession. But she said she also hired her because she wanted the perspective of a young advisor and someone who shared the firm's philosophy of educating clients and putting their needs first, not looking at the advisor fee and the commission possibilities.

The women, who spoke on a panel titled, “Unlock Multigenerational Client Relationships,” work as a team, mutually sharing each other’s clients, which strengthens their bonds with families, Crilley explained.

Kalik, who serves as an advisor and a divorce financial analyst, said that she met Crilley through a financial education program, and she was attracted to her family-friendly approach. “She was relatable to my family’s needs,” she said.

Kalik said of utmost importance is education and financial literacy, and she urges parents to encourage their children to consider starting their investing and savings planning because, “for the younger generations, it could be pretty scary,” she said.

She said the firm has implemented a "relationship engagement plan" that helps investors and new clients understand the firm’s process. “It helps remove the fear because they know what to expect from you and we know what to expect from them,” she said.

Kalik said having virtual skills and digital expertise is important when dealing with a multigenerational family firm because many of the younger investors do not live close to their parents. “We need to be able to connect with the whole family, whether they are down the street or live across the country,” she said. She also noted that a modernized website is key because it represents sort of a trust factor for the younger generation.   

The women said they also have to be cognizant of how they communicate with different generations. Kalik said the firm uses Facebook and the website, but  she sends out mail to those who prefer to receive it that way. The younger generation, Kalik noted, has a different tolerance for how much communication they want and what they would consider spam.  “So, it a delicate balance,” she said.

Crilley said prior to Covid the firm conducted regular in-office events, some of which have moved to Zoom, including “Coffee with Kate and Lori.” They also offer on-demand webinars.

Crilley said they even had a playground for clients’ kids before Covid. But they still have boxes of toys and coloring books to show parents that their children are welcome during meetings. “If you are interested in the next generation, you are going to have to be family focused, you are going to have to be child-friendly. You have to let them in,” she said.

The whole family must be your priority and you must be flexible, she added, noting that she often hears older advisor say, “I have done it this way, it just works.” But it does not work because the whole family is not included in planning, and the parents want their kids included more, she said.