Millennials: A Generation Receptive to Financial Guidance
By Joseph B. Fitzgerald
While any advisor would be excited to acquire his or her next high net-worth client, too often the search for high-earners means an advisor might miss out on an opportunity to cultivate relationships and work with younger generations.
Advisors should keep millennials, ages 22 to 37, top of mind as they acquire clients. The generation is driven and perceptive, and while they may not be high net-worth today or tomorrow, millennials are seeking upward mobility and they want advice on how to achieve success. In fact, as smart and tech savvy as they are, millennials are incredibly receptive to guidance, and they see the value of working with an advisor early on in their financial journey.
Millennials frequently use online software, free online tools, and mobile banking apps to manage their finances, but what may come as a surprise to some advisors is that a large percentage are also looking for a human touch. A recent Guardian study, “Millennials and Money: Understanding What Drives Financial Confidence,” reveals millennials value a balance between digital and human experiences to be financially confident. This means there is a strong opportunity for advisors to provide sound advice to millennials and help them reach their long-term goals through thoughtful financial planning.
When breaking the data down by region, the study reveals that millennials in the Northeast say they prefer learning about financial strategies via face-to-face meetings with an advisor more so than others across the nation. These meetings are opportunities to get to know younger clients and establish their financial goals, as well as familiarize them with products and services, such as life insurance or retirement planning, that will help them feel secure. While having technology at their fingertips is routine for the generation, advisors and firms should opt for in-person programs like financial seminars on a relevant topic or hosting a networking event with peers. These social learning opportunities will resonate with current and prospective millennial clients.
Millennials’ top priorities include liquidity and access to their money. Many have goals that include opening their own businesses, investing in real estate or protecting themselves in case of an emergency. These initiatives require access to money, so millennials are often looking for an expert to guide them through strategies for saving money in places that allow them flexible access, and access to plans beyond standard employer offerings. Explore conversations about the options available and how millennials can build a plan that creates easy access to cash, while also setting some funds away for longer-term growth.
Interestingly, Guardian’s study also reveals millennials tend to care not only about saving and investing, but that they prioritize protection, too. As an advisor, you can work with this generation to integrate both strategies into one plan that leverages growth through investing, while also encompassing protection through insurance products. Emphasize the importance of establishing an offensive and defensive strategy to proactively grow income, but also to protect it in the event of a disability, a longer retirement, or other life events and changes.
On top of providing tactics and strategies, regular meetings with your millennial clients can instill a greater sense of financial confidence and security. Guardian’s study found that nearly 90 percent of millennials across the U.S. say having a detailed financial plan would improve their confidence in achieving their financial goals. So much so, they say having a detailed financial plan is equally as important to them as getting a bonus at work.
These insights reveal an immense opportunity for advisors in the Northeast to step in and offer their expertise, so millennials can prepare for long-term financial health. Encourage your younger clients to keep up in-person meetings and leverage online capabilities so that your clients have the benefits of in-person and digital solutions. With proper guidance and careful preparation, your millennial clients will want you to be a part of their journey to financial confidence through all of their milestones.
Joseph B. Fitzgerald, RICP® is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is an indirect, wholly-owned subsidiary of Guardian. Northeast Planning Corporation is not an affiliate or subsidiary of PAS or Guardian.
