Over the past decade, there’s been quite a bit of heated discussion about the millennial generation.
To be fair, much of this discussion has centered around stereotypes—avocado toast, anyone?
There’s also a lot of disagreement about who millennials even are, with the word “millennial” serving as sort of a catch-all term for young people in any age group. (For the record, Pew Research Center defines the group as those born between 1981 and 1996.)
But, regardless of any stereotypes or misconceptions, millennials are a major demographic who are increasingly in need of the services of financial advisors.
Here are three reasons why financial advisors should make an effort to connect with clients from this oft-misunderstood generation.
Millennials stand to inherit a lot of money from their parents.
Much has already been written about the pending wealth transfer looming on the horizon. Younger generations are set to inherit 30 trillion dollars from their parents in the coming years.
This is a huge deal for advisors, since they could stand to lose a lot of business if they don’t make connections with the next generation. After all, it’s incredibly common for those who inherit money to fire their parents’ advisors.
On the other hand, advisors who are proactive about attracting the business of millennials can reap the benefits of those who can’t be bothered to make those connections.
Millennials need help managing their debt.
Of course, not all millennials are on the cusp of getting rich.
While many advisors prefer to work with high-net-worth individuals, the reality is that many millennials need help reducing their debt before they can plan for a meaningful future.
Unlike, say, the baby boomer generation, millennials are often prevented from making major investments by mountains of student loan debt.
While not every millennial has this particular pain point, student debt is definitely a major impediment for many in this age bracket. A knowledgeable advisor will be able to carve out a niche as a debt reduction specialist—making life easier for millennial clients and, in all likelihood, attracting the business of their friends.
Millennials can give advisors business for decades to come.
Sure, there’s plenty of opportunity to specialize in older clientele, such as recent retirees. But, for advisors looking to have a career built on long-term client relationships, it only makes sense to connect with younger generations.
The truth is that millennials aren’t unambitious or uninterested in their future. In fact, many of them are looking for ways to reduce their debt, save for retirement, and create a comfortable future for themselves and their families. Many of these potential clients in need of financial guidance, provided by an expert who has seen what works and what doesn’t.
If you’re an advisor looking to attract the business of millennial clients, check out our free e-book, How Financial Advisors Can Connect with Millennials. It’s full of great advice that will help you better understand and serve clients from this much-discussed generation.