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June 27, 2014 at 07:59 AM
Think young investors need their advisor “to mirror them” in terms of looks and age? Think again.
In a session at Securities America’s recent conference, a group of young investors told the assembled advisors otherwise.
“They really value experience,” Securities America Advisors President Janine Wertheim said in an interview. “And several work with their parents’ advisors and are not inclined to work with an advisor without much time or experience in the game. That’s a big deal to them.”
Independent broker-dealer Securities America says its recent national conference was its second best ever, as measure by attendees. The San Francisco gathering, held June 20-23, attracted 1,100 individuals; about half were advisors.
A session on how advisors can work better with Gen X and Gen Y investors gave the reps plenty of practical tools, and the group’s 24th annual event also featured a special session for advisors 40 years old and younger.
At the session, a group of young investors listened to recordings of advisors describing what they do for clients. The investors gave their immediate reactions to the advisors’ thoughts.
The group of Gen X and Gen Y investors was diverse, with some married, others married with children, single or self-employed. Several already work with an advisor, while others invest on their own.
“One of the big takeaways was that these investors really connected and resonated with holistic planning and with advisors who talk about getting to know you, the client, and your unique circumstances,” Wertheim said.
Younger investors also don’t gravitate to retirement planning. “They’re very interested in augmenting their income for the next five to 10 years, and focusing on retirement is a turnoff,” Wertheim said. “They want to enjoy the now!”
Members of Gen X and Gen Y are not concerned about what type of broker-dealer an advisor works for or is affiliated with. “They don’t see a difference … and want individual relationships … and an advisor to look at [his or her] unique situation,” the Securities America executive said.
Plus, these investors want to be deeply involved in the planning process and educated about their investments, she says. “They really value face-to-face meetings vs. doing business online, and they value transparency when it comes to the costs of doing business with an advisor.”
Another way advisors can relate well to younger investors is by discussing real estate. “They want to know about where they should buy, rent or invest,” Wertheim said.
