With more than $60 trillion in assets poised to pass between generations during the next 25 years, it has never been more important for advisors to connect with their clients’ heirs.
And yet, new research from global research and consulting firm Cerulli Associates finds that only 13% of affluent investors report that they choose to work with the same advisor whom their parents used.
Of the remaining 87% of investors who report not using their parents’ advisor, 88% of them indicate that they had never even considered doing so.
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“The transfer of wealth to younger generations is one of the most significant challenges facing the wealth management segment,” the new issue of The Cerulli Edge—U.S. Retail Investor Edition states. “As both current clients and their advisors advance in age, providers face a substantial threat to their current asset bases because most inheritors do not retain their benefactors’ advisors or providers.”
Cerulli stresses that there is no reason an advisory practice should not reach out to them to offer its guidance and advice.
“Even if the members of the next generation have yet to accumulate significant assets, the practice should view this action as part of its marketing strategy,” the report states.