Wrenne uses a three-tiered service model, charging a onetime, hourly fee for plans and projects.
“Our flat-fee model is for continual planning,” Wrenne says. “There’s an amount up front, then a couple hundred bucks a month. It’s like an on-call service. We also manage assets for a fee, but it’s a small percentage of our business.”
With a little patience, firms can serve millennials with traditional fee structures. Fisher charges 1 percent AUM, understanding that it may take time for accounts to generate revenue. Like many advisors, he isn’t profit hunting.
“If you want to make the most money in finance, this is not the way to do it,” he says. “You have to have an enjoyment of working with young people.”
Marcott, who charges clients a onetime $500 fee and a $100 retainer, says the retainer model keeps clients engaged.
“I’m here when they need advice,” Marcott says. “The retainer fee gets them me: Whatever I can help them with, I help them with. The idea is to have closer, intimate client relationships.”
Advisors also need new methods of connecting with millennials, says Bera. Millennials want high levels of engagement. Video chats, text messaging and e-mail are important for staying in touch.
“I’m location independent, so I can work with people across the country,” she says. “Millennials want advisors to work with them in a virtual way. My clients don’t want to come to an office during their workday; they want to Skype with me in the evening or the weekend. I meet babies and puppies that way, which is really fun.”
Pam Capalad’s planning firm Brunch & Budget is also location independent. Clients book appointments at a restaurant of their choosing, or meet over video chats, and she walks them through the planning process over brunch.
“I wanted to talk to clients like they were friends in a casual setting,” Capalad says. “Young people are afraid they’re going to be judged because they didn’t learn what they were supposed to do with money. Smart and talented people are embarrassed about their finances. Discussing it over a meal chills them out.”