Wealth management professionals have long prioritized serving current clients who represent the most attractive revenue opportunities. In doing so, many wealth managers have failed to understand the needs of later generations who are increasingly crowding the wings and could become clients in their own right.
A new report from BNY Mellon Pershing argues that the best wealth retention strategies are ones that advisors can use both with clients and their heirs. In the current challenging environment, advisors have the opportunity to engage in more meaningful conversations with clients and leverage technology for virtual meetings that will have cross-generational appeal.
“It’s vital that advisors learn how to be the primary destination for entire families,” the report says.
Consider the opportunity of heeding this admonition and the costs of not doing so. At present, more than $2 trillion is being transitioned every couple of years, the report says, citing research by Cerulli Associates. And 87% of heirs fire their parents’ advisors.
One way advisors can demonstrate their commitment to families is to plan a calendar of events for the next generation focused on their life events and interests. Financial education is key, but so are events designed for the whole family and activities that appeal to teenagers and young adults.
See the gallery for 10 ideas from BNY Mellon for advisors to connect with their clients’ adult children. Many of these events can be conducted either virtually or in person.
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