When you think of a millennial, you’ll often imagine a younger tech-savvy individual who flourishes in a hyper-connected world. As an established advisor, it can be challenging to connect with another generation seeming so different from your own, but finding ways to attract young investors is crucial for your business.
Millennials (ages 23 to 38) now outnumber Baby Boomers, and millennial HENRYs (Higher Earners Not Rich Yet) are quickly becoming a force in the stock market. Millennials are twice as likely to use a robo-advisor than any other generation. So how can a financial advisor outsmart an algorithm? The key to attracting and keeping young investors as they grow into affluent older adults is your level of service.
How do you differentiate your services for millennials?
Heighten access to your services
COVID-19 has ushered in the era of the Zoom meeting as an everyday occurrence, and for millennials, it’s a preferred method of communication due to the flexibility to meet anytime and access to meet anywhere. In a recent survey, 59% of millennials were likely to use Zoom to communicate with advisors more than any other generation.
Create educational content
Educational webinars should be high on your list. A National Financial Capability Study found that millennials were more likely to be less financially literate than any other generation. In the study, respondents were given three basic financial questions, and only 19% of millennials were able to answer all three.
Build personal relationships through social media
87% of millennials said they would be open to their advisors following them on social media, Facebook in particular. Providing millennials bite-sized information personalized for them on social media is a good way to be top of mind. Send them a link to a report or an article you think might interest them.
Consider personalized modular planning
Millennials want advice tailored to them. While they may not be ready for the usual savings for retirement talk, millennials struggle with understanding student debt and how to afford their own home. You might find prioritizing goals such as debt management and savings goals are topics of much more interest.
While Millennials may not have ten million in investable assets now, they are poised to inherit from their baby boomer parents and build wealth of their own. As with any generation, millennials want to be heard. In most cases, empathy is your best asset. With Generation Z (ages 8-23) in their 20s quickly approaching their adult years, a need to adapt to changing generational needs is necessary in order for RIAs to survive.
If you need ideas on how to reach out to the HENRYs of the world, let us know, we’re here to help.