Millennials: A Generation Receptive to Financial Guidance.

AuthorFitzgerald, Joseph B.
PositionGUEST ARTICLE

While any advisor would be excited to acquire his or her next high net-worth client, too often the search for high-earners means an advisor might miss out on an opportunity to cultivate relationships and work with younger generations.

Advisors should keep millennials, ages 22 to 37, top of mind as they acquire clients. The generation is driven and perceptive, and while they may not be high net-worth today or tomorrow, millennials are seeking upward mobility and they want advice on how to achieve success. In fact, as smart and tech savvy as they are, millennials are incredibly receptive to guidance, and they see the value of working with an advisor early on in their financial journey.

Millennials frequently use online software, free online tools, and mobile banking apps to manage their finances, but what may come as a surprise to some advisors is that a large percentage are also looking for a human touch. A recent Guardian study, "Millennials and Money: Understanding What Drives Financial Confidence," reveals millennials value a balance between digital and human experiences to be financially confident. This means there is a strong opportunity for advisors to provide sound advice to millennials and help them reach their long-term goals through thoughtful financial planning.

When breaking the data down by region, the study reveals that millennials in the Northeast say they prefer learning about financial strategies via face-to-face meetings with an advisor more so than others across the nation. These meetings are opportunities to get to know younger clients and establish their financial goals, as well as familiarize them with products and services, such as life insurance or retirement planning, that will help them feel secure. While having technology at their fingertips is routine for the generation, advisors and firms should opt for in-person programs like financial seminars on a relevant topic or hosting a networking event with peers. These social learning opportunities will resonate with current and prospective millennial clients.

Millennials' top priorities include liquidity and access to their money. Many have goals that include opening their own businesses, investing in real estate or protecting themselves in case of an emergency. These initiatives require access to money, so millennials are often looking for an expert to guide them through strategies for saving money in places that allow them flexible access, and access to plans beyond...

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