Updated September 2023

“A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be.” – Wayne Gretzky,  former professional ice hockey player and head coach

There’s a great business lesson for financial advisors hidden within Gretzky’s words that are especially relevant given the tremendous wealth anticipated to transfer to Gen X in the coming years: expect that the assets your clients have now (the puck) will be going to to their children upon their deaths, and take action now to develop relationships with the next generation.

Not all financial advisors are adequately prepared to meet the needs of Gen X, let alone the needs of even younger beneficiaries—and they will undoubtedly suffer for it. According to a 2018 report from Cerulli Associates, more than 70% of heirs are likely to fire or change financial advisors after inheriting their parents’ wealth. The best way to prevent this potentially devastating outflow of cash is to establish connections with the next generation of investors while their parents are still clients.

Request an introduction

The first thing you want to do is to have your clients introduce you to their beneficiaries. Some clients will welcome this idea, and some won’t. Some will want to include their children in the planning process, and some won’t. But you won’t know until you ask. Start by speaking with your core clients with whom you have a more personal connection, and resolve to call at least one client a week (more if your schedule permits) to arrange a meeting.

As long as their is no violation of your clients’ wishes or privacy, you might also consider reaching out to beneficiaries directly. You can easily identify who they are by reviewing the life insurance policies, annuities, and IRA rollovers of your current clients.

Of course you’ll want to be transparent about the relationship you have with their parents, but involving them in their parents’ affairs isn’t the reason for reaching out. All you want to do is meet for coffee to answer any questions they may have. You don’t need to wow them with your capital markets knowledge; you just have to make them feel like you’re the right advisor for their parents. Do that well, and they may conclude you’re the right advisor for them as well.

Take steps to nurture new relationships

Once you’ve met the adult children of your clients, you’ll need a strategy that will allow you to stay in front of them without having them feel pressured. Here are a few suggestions:

Ensure you invite the entire family to client appreciation events

Mix and mingle with all your guests, but be sure to spend time with your clients’ adult children. Engage them in meaningful conversation, and if you need a strategy for that, consider using the F.O.R.D. method. (Be sure to capture what you learn in your database/CRM.)

Soon after an event, follow up with a handwritten note to thank them for attending. Let them know you enjoyed meeting them and that you look forward to seeing them again. Don’t pitch your business; don’t even include a business card. Your goal is to simply show your appreciation.

Send a personally branded magazine

A gift subscription to one of our four personally branded magazines will keep you in consistent contact with clients’ families. A recent survey conducted by GfK MRI reports that magazine recipients keep these publications prominently displayed in their homes for weeks, reading and rereading the articles, trying the recipes, and sharing content with others. Click here, and we’ll send a free sample copy to your inbox where you can judge the quality for yourself.

Get a free sample of our most recent issue.

Engage with them on social media

Every business understands that they need to be active on social media, but what they don’t understand is that they can’t just post information related to their business.

Social media is meant to be social. Today, it’s how people connect with one another to share aspects of their lives with friends and relatives using chats, photos, and videos. If you want to get to know your clients’ beneficiaries, then you need to do the same.

• Don’t just like their posts; comment on them.
• If someone interacts with your post, take a moment to interact with them.
• Be authentic and share aspects of your personal life. It’s how people will get to know, like, and trust you.
• Keep an eye out for content you can share that you know will resonate with your connections, and share it when you find it. “I saw this and thought of you” let’s them know you’re thinking of them.
• Post content they’ll find valuable. We’ve got a large library of Branded Posts addressing a huge range of topics you can select from and schedule weeks, even months, in advance with our Facebook and Instagram schedulers. A tool like that can ensure you’re consistently touching base with your sphere.

The takeaway

Take steps to connect with your clients’ adult children and begin to build relationships with them now so that when the time comes, they’ll turn to you for help with managing their inherited assets. Include them in events you plan for your clients, send them useful and entertaining content whether it’s one of our magazines or something else, and stay active on social media.