Financial Advisors, Listen Up

May 12, 2021 | Financial

Marketing Blog

Financial advisors, listen up. The greatest intergenerational wealth transfer in American history has already begun — but many financial advisors might lose their biggest clients. Younger generations will inherit $30 trillion in wealth in the next 20 years. That’s huge! However, most kids say they aren’t interested in retaining their parents’ financial advisors. Gen X, Millennials, and Gen Y are instead searching for new financial advisors amongst their peers or exploring other money management. Losing clients during this wealth transfer could be a huge problem for financial advisors who’ve spent years fostering lucrative relationships. Now’s the time for savvy financial investors to take the first step toward mitigating these risks by acquiring new clientele. And that means creating a robust, modern financial advisor marketing plan.

While there’s no bulletproof trick for retaining clients during a multigenerational wealth transfer, financial advisors can implement these five marketing strategies:

1) Engage Your Client’s Children

As a financial advisor, you should also engage with your client’s family. You work with their financial matters, which will ultimately pass on to the next generation. In effect, you are the family financial advisor, and decisions affect everyone. So, how can financial advisors build stronger multigenerational bonds with their clients’ children before the family’s wealth transfer happens?

Start Young: Encourage clients to initiate discussions about their personal finances, even as young as teenagers.

Include Adult Children: It’s important everyone is on the same page. Encourage family conversations about money, budgeting, and their financial needs. Allow adult children to attend meetings with you if they feel comfortable doing so.

Act as a Moderator: Discussions of money can require a neutral party to explain, clarify, and make recommendations.

They can start with relevant financial issues, such as buying a car, paying for college, or purchasing a first home. These early interactions make it more likely that adult children will continue to trust and retain the financial advisor after completing the generational wealth transfer. Lastly, only 35% of financial advisors say they proactively bring up the issue. So set yourself apart from the rest!

2) Encourage Clients Not to Hide Family Wealth

Many parents don’t feel comfortable revealing every aspect of their finances to their children, even after becoming adults. However, encouraging clients to discuss family wealth distribution plans can benefit parents and adult children. Incentive trusts, tying fund distribution to ages and events, and other disbursement methods can make it easier for children to understand their parents’ estate-planning strategy. Early communication, education, and preparation can prevent kids from squandering their inheritance and keep many financial advisors “in the family.”

3) Market to a Younger Audience

Money is coming their way, and if they don’t have a financial advisor, your marketing plan needs to include strategies to reach them! A younger audience is looking for different things on different platforms. Are you on social media? Are you offering events that appeal to younger generations? Do you know what they are looking for?

Attract Younger Clients

Expanding your client base to include younger adults can be worth the effort. Download our FREE infographic for information on how to attract, connect with, and cultivate younger clients.

4) Start Sourcing New Financial Services Clients

Engaging in new customer acquisition as a financial advisor is one of the most proactive ways to keep business booming during the multigenerational wealth transfer. What financial marketing solutions can get you in front of the right audience at the right time?

Direct Mail Marketing: Get your audience engaged and familiar with your firm. A personalized, branded postcard is a great way to put your ad in their hands – literally!

Webinars: What better way to connect than face-to-face, from the comfort of home? Educate and build trust, all in one financial advisor marketing solution.

Financial Seminars: Proven for decades as a top financial advisor marketing plan, financial seminars combine the best aspects of customer service and business education to create a one-of-a-kind experience.

Educational Workshops: Take a financial seminar to the next level! Educational workshops can be just what your business needs when you want a more informational approach.

Appointments: Sometimes, consumers need to meet in a one-on-one appointment to reach their decision. Make sure you connect with quality prospects and close more business.

Multichannel Marketing: Don’t limit your financial marketing plan to just one solution. Reach more consumers, in more places, by combining the strategies that work best for your business.

5) Outsource Your Financial Advisor Marketing to Grow Your Business Quickly

Whether you’re looking to grow your business quickly or simply keep your pipeline full of qualified prospects, LeadingResponse will deliver. Our financial advisor marketing consultants can help you design a multichannel marketing solution and target your ideal consumers seamlessly.

We engage more than 1.9 million consumers annually, and we’ve helped generate over $117 billion in revenue for financial advisors. What are you waiting for? Let’s start growing your financial business.

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