Get Ahead Of The Looming $30 Trillion Wealth Transfer
Advisors shouldn’t only focus on attracting millennials with sizable assets. Over the next 30 to 40 years, millennials and members of generation X will inherit $30 trillion from their baby boomer parents—the largest intergenerational transfer of wealth in history. Advisors need to establish relationships with as many millennial clients as they can today, even if some of them don’t have a large amount of investable assets at present, in order to reap the rewards tomorrow.
Furthermore, if advisors adopt digital technology solutions that streamline their workflows and optimize client communications, they can position themselves to effectively service greater numbers of small accounts without hiring more personnel.
Knowledge Is Power
Given millennials’ growing population, and their current and future earning power, advisors can’t ignore them if they wish to remain relevant and profitable over the long term. Understanding how to effectively communicate the value of working with a financial advisor to millennials is the first step to establishing a foothold among members of this client pool.
David Lyon is CEO and founder of Oranj, a Chicago-based provider of digital advice solutions for financial advisors.