“It’s allowing them to have a voice in the conversation related to all things in life, not just money,” Sekhar said.
Priorities
While retirement is still a priority for members of Generation Z, they have a number of short-term goals, according to the study. For instance, 41% want to save or pay off expenses related to a major life event, 36% want an advisor to keep them accountable for what they want to accomplish financially, and 35% want an advisor to help them create a vision for their long-term financial goals.
One of the ways advisors can communicate best with those generations is through technology. Advisory firms that adopt new technology will grow faster, Fidelity said, and they must focus on apps—the younger generation’s second-most-preferred tool when engaging in financial planning.
“If I think about the adoption of technology, it is going to be an enabler for the advisor to be able to interact in a timelier responsive way to elevate the customer experience,” Sekhar said. “I don’t believe that these investors just want hands-off communication [but] instant communication and/or instant answers.”
While investors are more optimistic about next year, there are outside factors that can affect a person’s portfolio. In those instances, the advisor’s role as a steady hand becomes critical.
That means advisors must remind clients about “the negative consequences to reacting to a temporary moment in history and realizing that over the long term that this too shall pass,” Sekhar said. Advisors must have “the attitude to coach clients through that.”