Note: This article is courtesy of Iris.xyz
By Dr. Sonu Varghese
A lot of advisors talk about the desire to bring on next-generation clients. What’s fascinating is that the discussion almost always focuses on how to manage the relationship after a parent dies.
Investment News recently reported that 66% of adult children fire their parents’ advisor after receiving an inheritance. And while that statistic does illustrate the problem, when it comes to attracting Millennials in the first place, it may be best to begin where this younger generation is at the moment: at the beginning.
The fact is, few Millennials have significant assets to invest—yet. Although the oldest of the group are busy celebrating their 35th birthdays, 26% of Millennials are still living with their parents according to Pew Research Center. The reasons are many, from a highly competitive job market to unprecedented student debt.[related_stories]
Regardless, what Millennials need now is help accumulating enough assets to not only move out of Mom’s basement, but to start investing in their futures. By filling that need, you can provide a much-needed service to the next generation and assist your existing clients by helping their kids gain stronger financial footing. Ultimately, you’ll earn the business of tomorrow’s breadwinners—even before they inherit Mom and Dad’s wealth.
One way to tackle this objective is to build a new service offering that leverages Robo technology and helps Millennials start saving for the future. Whether you revere or detest them, Robo platforms are proving their worth as a low-cost alternative to comprehensive investment management. And while some advisors may still view Robos as a threat, those who are combining human intelligence with the latest technology platforms are already finding an edge. Using them to help Millennials start a serious savings plan can be a great first step.