As the American economy braces for a nearly $70 trillion wealth transfer from Baby Boomers to their loved ones, many financial advisors are scrambling to get in front of the great wealth transfer but aren’t sure how to attract and educate this younger generation of investors.
Worse yet, some financial advisors don’t seem to recognize the urgency of the situation.
As Andrew Osterland from CNBC put it, “For financial advisors, the transfer of wealth from Baby Boomers to heirs over the next two decades is a bit like climate change. The consequences may eventually be huge, but it’s easy to ignore in the short-term.”
Further complicating the situation, studies have found that more than 80% of these green investors will take their business elsewhere after they inherit their loved ones’ wealth and assets.
Of course, depending on your financial advisory firm’s position in the industry, you might view this as an emergency or an opportunity (or perhaps both).
Regardless of your perspective, you need to take swift and deliberate action to position your firm as the go-to shop for young investors — those individuals and families who suddenly have a great deal of money and assets but lack the experience to grow that wealth consistently without a trusted wealth manager.
Experts agree that the biggest barrier to navigating the great wealth transfer successfully is how financial advisors are currently communicating with these youthful, tech-savvy investors versus how they want to be communicated with.
In the past, financial advisors would simply work with aging investors to bridge a relationship to their heirs through traditional word-of-mouth referrals.
Modern investors don’t want any part of that. They want to be educated and inspired along a tailored and immersive customer journey.
So, how can financial advisors begin to tackle this challenge (especially those financial advisors who don’t know how to create great digital experience)?
First, you need to ensure you have the proper infrastructure in place to speak to your target audiences. Next, develop a sound marketing strategy that caters to your strengths and promotes your brand. Lastly, and most importantly, you should research and invest in a practical, powerful marketing automation platform.