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15 August 2019

Whitepaper: Turning heirs into clients

By Bob Conchiglia

No question, intergenerational wealth transfer is a hot topic for wealth managers right now. The Gen X and Millennial children of baby-boomer clients stand to inherit an estimated $68 trillion in assets over the next 25 years. The question is, will you retain these heirs as clients of your firm?

The odds are uncertain. Two-thirds of children reportedly leave their parents’ financial advisor upon receiving their inheritance. Advisors need to think about what they can do to shift the odds in their favor.

Our newest white paper, Turn Heirs Into Clients, spells out a number of practical steps advisors can take well before the wealth transfer occurs. It starts with understanding some of the key differences between the emerging generation and their parents. For example, studies show that many younger investors are interested in responsible investing and good ESG behavior from the companies in which they invest.

The big difference, though, is fluency with technology. This is, after all, the generation that grew up with the internet, smartphones and all things digital. The good news for advisors is that they are not all drawn to purely robo investing platforms, as some pundits have predicted. An Accenture study found that a majority of emerging investors actually favors a hybrid advice model. Nonetheless, they will expect their wealth managers to be capable of delivering the type of digital and mobile experiences they’ve become accustomed to in other aspects of their lives. To win their confidence, advisors will need to demonstrate that they are making smart use of the latest technology tools. A mobile-friendly, interactive portal with 24/7, on-demand access to portfolio information is a competitive necessity.

As the paper points out, heirs will not stay with you simply out of family loyalty, but because you are their best option. Download the full white paper for tips on how to demonstrate your value and make your firm indispensable in the lives of your potential clients.