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Converting your clients’ children into clients can be a monumental boon to your book of business.  Here are some tips for becoming a multigenerational wealth planner.


With baby boomers either entering or traversing through their retirement journeys, a massive shift in wealth is ready to hit the nation. In the next two decades, they’re set to transfer upwards of $80 billion to their Gen X, millennial and Gen Z heirs, signaling the biggest movement of assets in American history [1].


That leaves the door wide open for advisors who are looking to capitalize on generational wealth being placed in the hands of those who may not have someone to turn to for financial advice. At the same time, studies show that upward of 70% of heirs are likely to fire or change advisors after inheriting wealth [2]. How can advisors buck this trend and take advantage of this opportunity? Here are a few things you can do that could help you acquire and retain clients across generations.


Discuss Wealth Transfer Strategies

This is the natural evolution of every financial plan or wealth management plan, and no perfect story is complete without an idea for the end. A plan for the transfer of wealth also often includes the goals of the entire family rather than those of just the client, meaning that every member is included. This calls for a rigorous assessment of a family’s values and maintenance of a plan to uphold those values as your client’s family adapts and grows. Ideally, the inclusion of the younger family members, or the heirs of your clients’ estate plans, could help you earn their business, but it’s important to understand the legwork it’s going to take.


Touch Base Early in Life

According to a study from Nuveen, 80% of inheritors who are introduced to a financial advisor at a young age decide to work with that advisor, while only 54% of inheritors who are introduced to that advisor as adults or young adults go on to work with their family’s financial professional [3]. Meanwhile, 87% of future inheritors plan to enlist in the advice of a financial professional when the time comes. With that much overlap, it seems obvious that advisors should consider introducing themselves or arranging for some type of introduction to the children of their clients, yet so many vie solely for the business of pre-retirees and retirees. While those demographics are certainly the most in need of immediate help, there seems to be little doubt that connecting with young prospects could help your firm in the long term.


Develop Your Referral Conversion Technique

Referrals don’t just happen. They take time, effort and presence of mind, whether those relationships are preestablished or not. Sure, it would be nice to get a little nudge from your clients whose opinions carry some extra weight with their children, but at the end of the day, your ability to convert and sell prospects on your skills as a person and as an advisor will make the difference. Additionally, your referral conversion techniques can cover a wide range of strategies and touch on multiple points. The way that you maintain contact, engage with, identify the goals of and form personal relationships with potential clients could be the difference in earning their business, and that comes down to a commitment to the growth of your practice. Financial advisory is a relationship-based industry, and to convert referrals, you need to show why a partnership with you can be different and advantageous.


Become a Teacher

As the epidemic of financial undereducation and miseducation sweeps the nation, we continue to gain a deeper understanding of an unfortunate truth: So many don’t have access to reliable sources of financial information. It’s not for lack of desire, however, as nearly 80% of millennials and Gen Zers have turned to social media outlets like YouTube, Reddit and TikTok for financial advice at some point [4]. While this type of content can be great for budgeting tips and quick-hitting information about general financial principles, it can’t replace customized service tailored to the needs and goals of each client. This is where you can come in, providing personalized education centering around the individuals you work with. Moreover, you can host live events and webinars to build a deeper connection and form those touch points with prospects, illustrating both your ability and your willingness to help.


Let Them Know They Are in Charge of Their Money

Everyone wants their opinion to feel important, and your clients’ children are no different. Remember, they may not have a lot of assets now, but if set upon the right track, they could acquire their own wealth as well as inherit their parents’ or grandparents’. Once you touch base with them, offer an attentive, listening ear, and develop recommendations to help them where they are at now, as well as where they will be in the future. Obviously, with a job to educate, be sure to offer advice that suits their needs and objectives, but it’s also crucial to set yourself aside and develop a deeper connection. While empowering your clients with information, remember that when meeting with younger people, you also have to put yourself on an equal playing field with them. Their circumstances will inevitably change through time, and it’s imperative that you make sure they know where to turn and that you are a trusted resource for them now and in the future when it comes to their financial matters. Recognize that they will want to make their own mark and not just follow their parents’ choices; make sure they know they are in charge of their own financial destiny and goals when it comes to their financial plan.


Connect Them to Younger and More Diverse Advisory Team

Just because you own a financial advisory firm or an RIA doesn’t necessarily mean that you need to be the only trusted financial advisor. You can hire a more diverse team of advisors who may have a better connection with or a better understanding of the issues your clients face, thereby giving them a better chance to help those clients succeed in the pursuit of their goals. Younger and more diverse advisors may also be more prepared to engage with younger clients, whether that be through communication or understanding of modern trends and desires. This could also work if you’re looking to earn the business of a client’s spouse. With women’s wealth growing faster than ever, now may be the perfect time to bring a woman onto your team who can offer a different perspective and identify with your desired clients’ issues.


Embrace Technology

Technology continues to evolve and expand, and advisors must be ready to fall in line to survive. It’s also important to meet younger generations where they are, which is often online or over the phone. While it may take some time to adjust to this new way of conducting business, it’s a worthwhile venture, as your ability to utilize the tools of the 21st century can help you with any client, not just the ones set to inherit major amounts of wealth. For example, if you’re looking to connect with clients across state lines, you can use video calls to eliminate the barriers built by geographic distance and time zones. You can also move your business online to ensure that you’re always prepared, no matter where you are in the country. Newer generations need your help, but they also need you to meet them in the middle to a certain extent, and becoming excited about leveraging technology to showcase your skills, flexibility and personality could make the transition easier.


If you have any questions about how you can take advantage of the upcoming historic transfer of wealth, call your Quantum consultant today at 800.440.1088. We specialize in personalizing strategies that play to the strengths of our advisor partners and help them reach their maximum potential.