Millennial clients are in the rising generation in families with multigenerational wealth, and the well-known industry worry, shown in study after study, is that a lot of millennial clients leave their family’s advisors.
However, a new report from Family Office Exchange (FOX) shows that might not be the case.
“The fear that the vast majority of millennial family clients will abandon their family’s advisors as soon as they have the chance is real and palpable,” the FOX report states. “Yet, we heard loud and clear from the millennial family clients who participated in the FOX Family Client of the Future research that this is not their intent.”
The Fox Family Client of the Future research comprised interviews with 30 millennial family clients — millennials in families with multigenerational wealth who use advisors — and 13 industry experts in addition to discussions with members of the FOX Thought Leaders Council and the FOX MFO Council to help family leaders, family office executives and wealth advisors better engage with and interact with millennial family clients.
Most of Rana Salti’s family member clients are millennials.
“What millennials want from their advisors is not unlike what other clients want — sound advice and expertise on matters such as investments and taxes,” states Salti, a family office executive, in the report. “What makes millennials unique is they want the same advice and expertise presented in a graphic and easy-to-understand manner,” she says, adding, “They need us to clear the fog.”
The paper makes several recommendations to help advisors better understand and serve their millennial family clients. Here are a few of them:
1. Connect on a personal level.
“Millennials must feel like their advisors know and understand them in order to believe that they have their best interests at heart,” the report states. “They must relate to their advisors on a personal level before they will trust them in an advisory capacity.”
To get to this level, FOX encourages advisors to openly communicate their own personal interests, as well as to be inquisitive about their clients’ interests.
Another way to help build relationships among millennial clients is by developing multigenerational teams.
“Millennial family clients say they do not see age as a barrier to relationship building,” the report states. “However, they do worry that their advisors are going to retire someday, so a multigenerational approach to serving them makes sense.”
2. Serve as a coach or mentor
Most millennials were brought up on team sports, while collaboration was an important part of their education.
“As a result, not only are millennials comfortable with the concepts of mentoring and coaching, they value these types of relationships and continue to seek them out,” the report states.
This is why FOX suggests offering coaching and mentoring opportunities to clients and staffers, providing staff training on coaching and mentoring, and establishing mentoring relationships for the team and use these relationships as models.