Updated: Jan 12
Goodbye to the old-fashioned parent’s financial advisors
In his article, CNBC’s Andrew Osterland discusses the implications of the “Great Wealth Transfer” on financial advisors.
As an estimated $68 trillion of wealth transfers from the baby boomer generation to the hands of millennials, Osterland claims that 80% of millennials will be on the hunt for new advisors and won’t keep their parent’s financial advisors.
This is why:
1 – Millennials have different expectations of financial advisors in how they want their services delivered to them. They need continual engagement, easy communication methods, and a simplified approach to investing.
Social media, text messaging, and video conferencing are all methods that should be utilized by financial advisors.
2 – Millennials may not meet the minimum wealth requirements to work with their parent’s financial advisors. Advisors will need to lower their firm’s investment minimum to an amount that’s realistic to millennials.
3 – Millennials may not be as wealthy as their parents. They will need pricing that they can afford in order to continue the financial advisor relationship. Financial advisors should consider price pooling millennials with their parents to provide discounts on services.
The bottom line:
Millennials need investment tools that are easily accessible, affordable, and educational. In many cases, it may not be their parent’s financial advisor, but instead, it may be a robo-advisor such as ETFication’s Portfolio Shepherd app.
Finance apps such as Portfolio Shepherd both empower people with education and provide tools to allow folks to take charge of their investment future today.
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