Knowing who your clients are is integral to your practice; after all, you’re in a people business. If you are a financial advisor in the know, then you know that Gen X and Gen Y stand to inherit more than $41 trillion in assets by 2052, most of which is coming from their Baby Boomer parents – your clients.
If you haven’t given much thought to this rising investor, you may want to think again. Not targeting them may be bad for business. It isn’t easy getting your foot in the door with this generation either. They have different wants and needs, as well as interests compared to their parents and grandparents. However, they are the future of financial planning and the clients you will be serving someday.
To reach this group, you may need to adjust your mentality – and become flexible, or as flexible as you can.
These generations appreciate selection and are more flexible than their parents. Being the first generation to have two working parents, they are more likely to have malleable work schedules, family leave options and more possibilities than their parents ever did. To suit them, you must also be flexible and be able to offer them a range of options, while catering to their particular requests.
They are more technologically savvy than previous generations. Gen Y is the first generation to grow up with the Internet, and these young adults are used to having everything at their fingertips and quick access to information. You need to have a presence in the places they frequent: the web, mobile and social media. You can also go as far as geo-targeting them on a local level.
Your job is to make financial investment exciting for a generation with a reputation for not saving, so that they begin to think about their financial future. Think about your business and how you can repackage it to attract and keep their interest. The goal is to engage these potential clients at the product level, company level, and experience level to gain their trust.
Another important factor to consider when marketing to the Gen X and Gen Y group is that they are more diverse than any other generation in terms of race, ethnicity and culture. Many speak different languages or have a family structure that is culturally diverse. It’s important that you connect with them at this level. Consider learning Spanish, for example, or hire people that are multilingual. Explore and understand how finances and investing are viewed among particular groups. Gen X and Gen Y’s, despite their mindset and way of doing things, are ingrained with the principals instilled by their parents and previous generations. Once you understand their culture, you can use it to show them the importance of investing and building a financial future.
Gen X and Gen Y are going to be seeking out financial advisors who understand them and work the way they do. If handled right, you may be able to capture an increasing share of their book of business.
Summit Brokerage Services is part of Cetera Financial Group, RCS Capital Corporation’s (NYSE: RCAP) retail investment advice platform.
This blog and website are for informational, educational and discussion purposes only, and the owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. Summit Brokerage Services, Inc., Summit Financial Group Inc., and any of their affiliated entities and principals are not a law firms or an accounting firms, or substitutes for an attorney or accountant. Although topics may be discussed on this blog that may involve legal, accounting, or investment issues, nothing on this blog shall be deemed to constitute the practice of law, legal advice, investment advice, and/or tax advice. Summit Brokerage Services, Inc., and its affiliates do not, and cannot provide any kind of advice, explanation, opinion, or recommendation about possible legal rights, remedies, defenses, options, selection of forms or strategies. The content on this blog is “as is” and carries no warranties. You should consult an experienced professional regarding tax consequences of specific transactions.
No reader should act in reliance on anything discussed in this blog without prior consultation with a licensed professional who is qualified to evaluate the reader’s individual facts and circumstances and offer an informed professional opinion with respect thereto. If any reader takes action or makes decisions based solely on the information on this blog without prior consultation with a qualified, licensed professional, the reader does so at his or her own risk and agrees that Summit shall have no liability resulting from such unilateral action or decisions by the reader.
Summit makes every effort to provide accurate and truthful information in its posts on this blog, but in no way expressly or impliedly warrants or guarantees the accuracy of its postings and/or the information posted here by others. All information is believed to be from reliable sources, however we make no representation as to its completeness or accuracy.