5 Tips for Financial Advisors to Appeal to Millennial Clients

Jeremy Biberdorf  |


Traditionally, financial advisors have had a good business going. They were the only game in town when it came to managing your investments. As a result, many enjoyed family legacies. This is where the kids of current clients eventually become clients thanks to the familiarity with the advisor and lack of options.

But technology is disrupting the financial services industry. No longer is it an easy process to attract and retain millennial clients. There are more options for the younger generation when it comes to investing their money and many don’t play by the same rules that their parents have.

Because of this, financial advisors need to get with the times if they want to grow their book of business or even survive. But where do you start when looking to appeal to millennial investors?

Here are 5 tips to keep in mind when attracting millennials into a financial advisors practice.

5 Tips For Financial Advisors to Appeal to Millennials

#1. Offer Up The Latest Technology

Millennials have grown up with technology and thus are extremely comfortable using it. As a result, waiting 2 or 3 weeks for their quarterly report to be mailed to them won’t suffice. They want access to their statements online.

The same idea applies to account access. They don’t want to be bothered with having to call up their advisor to get an update on how a holding or their overall portfolio is performing.

By offering them online access to their accounts and statements, they will be happier clients. Bonus points go to advisors who are able to create an app that allows account access. This will make it even easier for millennials to get access to their accounts.

And there are many benefits to the advisor as well. Allowing for easier account access will free up your time and save you money too. Think about it. No more printing paper copies of statements. No more fielding calls needing updates.

Instead, an advisors time can be spent building and solidifying relationships and thus growing your business.

#2. Be In Tune To Their Values

While Baby Boomers and Gen X were all about the money, millennials are more socially conscious. They aren’t interested in having oodles of money. Sure, they want to be successful financially, but they want to do so while being fair to others and protecting the world we live in.

As a result, many millennials seek out socially responsible investments. While historically these investments don’t perform as well as the market as a whole over the long term, millennials don’t care. Remember, making the most money isn’t the goal here. It is to be happy in life and knowing you are doing your part in making the world a better place.

And this gives the advisor more insight into talking with this generation. Don’t build a meeting around how great a portfolio performs. But rather discuss what makes the portfolio unique and how it adds value to the world.

#3. Relate To Their Struggles

Millennials grew up during the busts of the stock market. Because of this, they are more conservative investors than older generations. A smart advisor that is catering to this generation will be wise to talk about how their portfolios will stand the test of time when markets fall.

And a wise advisor will be able to show empathy and hold their client’s hands when the markets do drop, helping to keep their clients invested and rational.

#4. Keep It Simple

As technology drives the costs of doing business down, more and more robo-advisors are entering the playing field. What used to be a simple decision, go with a robo-advisor or a traditional advisor, has now become complicated.

There are new robo-advisors popping up each day and every investment firm has some twist on the robo ideology. As a result, new millennial investors can get overwhelmed and frustrated very quickly.

As a traditional advisor, this is where the human touch can come into play. You can walk them through the basics of robo-advisors and what sets your business apart from it. Just be sure to make your presentation simple and to the point.

There is no need to dig into the weeds and make things more complicated than they need to be.

#5. Want To Enjoy Life Today

Finally, millennials want to enjoy life now. Unlike past generations who were fine with suffering a little today to enjoy a comfortable retirement, millennials want to enjoy today while still putting something away for the future.

Because of this, advisors can’t hammer home the idea that these investors need to save every last penny for retirement. And many millennials have turned to real estate investments or dividend investing to reach their goals as they see these two options meeting both their needs today and in the future.

Advisors need to find a healthy balance and give guidance on how to enjoy life today and still help millennials save enough money so that they have options down the road. A wise advisor won’t just stick with the traditional stocks and bonds here either.

By taking into account alternative investments, like real estate or peer to peer lending, an advisor can certainly craft a portfolio that meets the needs of the millennial investor.

Final Thoughts

Overall, the investment landscape is changing. Traditional financial advisors can’t just sit back and rely on their client’s children becoming clients. Advisors need to make sure they have the latest technology offerings and can talk to and connect with the needs, values and goals that millennials bring to the table.

Successful advisors who are able to do this will be able to grow their business for many years into the future.

Written by Jeremy Biberdorf

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

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