Top 12 Tips for Financial Advisors to Keep Their Clients' Children as Clients

How can financial advisors retain the next generation clients as clients?

By addressing several key themes - familial approach, personalized financial guidance and education, sustainable investing options and digital entertainment, - financial advisors can better align with the values and preferences of younger generations and create lasting relationships.

Having sourced many resources and leaning on our own expertise, here are our VegTech? Invest Top 12 Tips for doing just that.

Reach out to use any time to discuss.

1. If You Want to Be the Whole Family's Financial Advisor, Act Like It

A. Initiate Early Conversations and Build Relationships

Engaging with clients' children early on, even in elementary school, about their interests and passions can help create trust and long-standing relationships. As they grow, discussions can shift to more complex financial topics like saving, budgeting, and planning for future goals.

B. Engage in Family Meetings

Encouraging clients to have early, light and high-level family meetings that include discussions about wealth transfer and financial planning can allow the advisor to be a part of the family's financial journey. This also encourages earlier inter-generational family discussion about money and investing, which is a good step for all.

C. Offer Free or Flexible Financial Advice Until A Certain Age

A bit like health insurance, providing free financial advice to the children of clients until a certain age can help establish a connection and relationship early on. Establishing parameters for how much time and services are provided for free until transitioning to a paid service model should be done from the out-set.

2. Begin at the Beginning: Emphasize Financial Education and Guidance

A. Host Financial Literacy Events

Not all young adults may have financial literacy. Fun and interactive activities, such as game-themed learning events and financial goals vision boards, can be the building blocks for good financial relationships of the future.

B. Facilitate Access to Financial Tools and Resources

With correct messaging, advisors can position themselves as trusted sources of information, simplifying complex financial concepts and providing resources or tools to help clients make informed decisions about sustainable investments. Building trust through authentic communication is key.

C. Address Concerns About Economic Uncertainty

Many Millennials experience a sense of anxiety around financial stability due to previous economic downturns in their formative years such as the 2007-2009 recession and the pandemic.

Advisors can focus on providing risk management strategies and financial plans that accommodate for potential market volatility and life uncertainties, taking into account the need for empathetic reassurance via long-term financial planning.

Guiding them through the vicissitudes of the market can help them feel comfortable early on.

3. Next Gen Communication: Let Us Count the Ways

A. Leverage Digital Platforms and Social Media

Gen Z and Millennials want quick, on-demand information and they live their lives online. Active social media profiles providing snackable relevant content can be engaging and shows that the advisor walks the talk. This also positions the advisor as a resource for educational content, making the firm more relevant to younger clients.

B. Highlight Sustainable Investment Opportunities

A lack of knowledge and transparency about sustainable investing has been identified as a barrier for many investors. Advisors should actively discuss sustainable investing themes and options as part of their services.

Reach out to sustainability experts to be educated on sustainable investing, allowing you to meaningfully reach out to Next Gen investors about the subjects they care most about and in which they want to invest.

C. Beyond Sustainability: Values-based investing

Offer sustainability focused events, speakers and engagement. Demonstrating expertise in this area can help retain younger clients who value social and environmental impact alongside financial returns. From the food to the music to the keynote, make sure that events for the next generation are relevant.

4. What's Next

A. Recruit Younger Advisors and Foster a Next Gen Culture

Attracting and retaining younger clients can be easier if your advisory firm includes younger professionals who share interests and can relate to clients' children. Additionally, offering alternative fee models, like engagement-based fees, can appeal to young clients who may prefer a more flexible financial planning structure.

B. Focus on Lifestyle and Experience-based Financial Goals

Millennials prioritize experiences, such as travel, food and time away from work, and may have different spending patterns than previous generations. Developing strategies that allow for these lifestyle goals while ensuring long-term financial security is key to understanding and winning clients for the long-term.

C. Provide Personalized Investment Strategies

It's not one size fits all with Millennials. Buying a home, starting businesses, prioritizing life experiences and hobbies are all part of a larger plan. Creating bespoke strategies that align with both financial goals and personal values underscores that the advisors take their priorities seriously.

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