End-of-life planning can help build client relationships, be a bridge to the next generation, and help win inherited assets. Everplans™ offers strategies in this article written for the Advisor Advocate.
The Great Wealth Transfer and What It Means For Advisors
Over the next 30 years, trillions of dollars may be inherited by the heirs of baby boomers. Your clients’ money is going to wind up in the hands of Generation X and the millennial generation… and that may not be good news for you. According to an article published by Investment News*, 66% of children leave their parents’ financial advisor after receiving an inheritance.* That’s two-thirds of your business that may eventually evaporate. So what’s an advisor to do? There are two primary strategies an advisor should consider. First, forge a relationship with existing clients’ heirs now. Second, actively pursue the two-thirds who might eventually leave your competitors.
Reach Across the Generational Divide
- Involve the families. Schedule meetings with your clients’ entire families to discuss their plans. This is your chance for some face-to-face assurances and rapport-building with your clients’ heirs.
- Differentiate your value. Offer services to both parents and children that go above and beyond the expected. Comprehensive end-of-life planning using the digital platform offered by Everplans™** is one example.
- Expand your role. Become more than a financial advisor. Become integral in your clients’ estate plans. Help clients organize their digital accounts and assets, encourage them to list their funeral wishes, offer to act as their trustee (within reason), and go beyond your typical scope of services by filling in the gaps they didn’t even know existed in their estate plans.
Actively Pursue the Next Generation
- Adopt new technologies. The younger generations are much more comfortable in front of a computer than in front of a person. Offering portals, financial wellness tools, holistic planning tools, and hybrid robo-advisors helps you meet them on their turf.
- Tailor your marketing. Update your messaging to appeal to a younger generation. Use available income, HHI, and other data to target younger demographics who are likely to receive an inheritance. Position yourself as a windfall advisor. Any of these strategies can help you access Gen X and Gen Y before they receive inheritances.
- Source referrals from the next generation. If you’ve effectively reached across the generational divide with your own clients, start networking through their children. Birds of a feather tend to flock together, so you may recruit great future prospects through your clients’ children.
Everplans™ and Other Resources
The great wealth transfer can be a great opportunity if you correctly position yourself and your firm today. Everplans™** can help you assist clients with end-of-life planning by identifying, organizing and storing necessary legal, financial, healthcare and personal information on a secure digital platform.
You can explore the Scottrade® Strategic Resource Center to connect with Everplans™ and other organizations that specialize in technology, compliance, research, education and marketing. Many of these resources offer discounts to advisors who custody assets with Scottrade. (Scottrade provides this resource for informational purposes and does not specifically endorse any of the businesses within the directory. Scottrade also does not pass judgement as to whether those services are appropriate for specific business needs. Be advised this is not a full and comprehensive list of businesses that offer these types of products or services and that advisors are responsible for doing adequate research before making any purchases.)