When you hear the term “millennial,” what do you think of? This generation has faced many stereotypes, but it’s crucial for financial advisors to avoid generalizing them. Why? Because millennials are now adults, dealing with challenges previous generations may not have faced, making the role of a financial advisor more important than ever.
Benefits of Working with Millennials
Despite being labeled as entitled, picky, and impatient, millennials have many positive traits. They make choices based on their values and prefer working for companies with a greater purpose. They are achievement-oriented and enjoy collaborating to solve problems.
Beyond these qualities, there are three key reasons why financial advisors should focus on millennials.
Majority of the Workforce
Millennials now make up the majority of the workforce and are in the early stages of building wealth. Despite the setbacks from the Great Recession of 2008, many have succeeded as entrepreneurs or in high-level positions. Over the next few decades, millennials will replace older generations as investors and real estate owners, creating a need for financial advisors to guide them to financial success.
Inheritance from Older Generations
Millennials are expected to inherit over $68 trillion from their baby boomer parents by 2030. This wealth transfer could make them the richest generation in history, increasing the demand for financial advisors.
Growing Complexity of Financial Needs
As millennials age, their financial needs become more complex. Many, including the oldest millennials, require help with:
– Retirement planning
– Tax planning
– Life insurance
– Real estate
– College planning for their children
– Long-term care planning
– Estate planning
Given their life stage, millennials have a wide range of financial planning needs that advisors can assist with.
What Millennials Need from You
While working with millennials may seem less appealing than serving older, high-net-worth clients, financial advisors who choose to work with millennials are playing the long game. This strategy could ensure the success of your business for decades.
Millennials present unique challenges, and advisors may need to adopt new strategies. Here are a few things millennials might need from their financial advisors:
1. Debt Repayment Plans
Millennials face significant debt, mainly from student loans. They need advice on debt repayment plans and strategies to pay off their debt faster. As an objective financial advisor, you can offer strategies and plans that millennials might not consider on their own. They need your advice to grow and manage their net worth, helping them become high-paying clients in the future.
2. Comprehensive Financial Planning
Millennials need comprehensive financial planning advice, including starting or boosting their retirement plans and saving as much as possible. Many are entering the real estate market, with the biggest obstacle being saving enough for a down payment. Helping millennial clients set realistic savings goals and keeping them accountable will build their confidence in your expertise.
Millennials may not currently have the capital to meet your minimum investment requirements. Consider lowering your minimums for millennial clients in the early years to develop relationships that could pay off in the long run.
3. Virtual Availability
Millennials prefer working virtually and may avoid phone calls and in-person meetings. Even before COVID-19, millennials were comfortable with online interactions. They often work multiple jobs, so they appreciate saving time by scheduling meetings and other work online.
A recent study found that 98% of millennials use the internet to manage their finances. They are likely comfortable meeting virtually and using screen-sharing options to review financial documents and plans. Accommodating their online preferences may make them more inclined to work with you.
4. Reassurance
Millennials want to know they can trust you. They need to understand your process and feel confident that you have their best interests in mind. Having experienced two financial crashes since reaching adulthood, millennials are cautious about investing and buying their first homes. Your reassurance and transparency can encourage them to invest and grow their wealth.
Millennials value education and transparency. Many advisors also value client education. Millennials are eager to learn and engage, making them rewarding clients to work with.
Keep Your Business Growing by Attracting Millennial Clients
Millennials aim to improve their lives and contribute positively to the world. In the coming years, more millennials will seek financial advisors for guidance and support. Advisors who understand millennials’ specific needs are positioning themselves for long-term success.
If you need help marketing in the digital landscape and appealing to millennials, we’re here to support you! We’ll start by aligning your marketing approach with millennial clients’ preferences. Schedule a complimentary consultation with a marketing expert today to receive personalized recommendations on engaging with the next generation and growing your business for years to come.
