7 Keys to Attracting Gen Xers and Millennials to Your Practice by Ginger Szala - ThinkAdvisor
What You Need to Know
- By 2030, Generations X & Y households will control 47% of wealth in U.S., vs. 45% of baby boomers.
- Firms in the top quartile of revenue growth have more younger investors among their clients.
- This group prefers a financial coach to a financial planner.
Baby boomers have been financial advisors’ core client base for years, but a practice needs new blood to continue to grow. Considering that Gen Xers and millennials will control 47% of wealth in the United States by 2030, advisors need to understand how to attract this younger group and adapt their firms accordingly.
And the younger generations’ wealth will only increase as they inherit a “significant share of the $24 trillion expected to be passed down in the next decade,” according to a new study by T. Rowe Price that explores attitudes of the next generation toward financial planning — and planners. “In fact, the next generation will surpass baby boomer inheritances in just three years.”
Also, firms with the highest revenue growth had the largest percentage of clients under 55 (the oldest Gen Xers turn 56 this year). The study found that 37% of clients at firms in the top quartile of revenue growth fell into this age range. Only 12% of clients at bottom-quartile firms were 55 or younger.
