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The “DIY Generation” is comfortable with digital tools, and they’re less likely to seek help from a financial advisor. At the same time, they’re primed to inherit and build the world’s wealth. Gen Z and younger millennials are the high-asset clients of the future, and advisors need to work on connecting with them now. From my perspective, there’s one clear success strategy for advisors: expanding your financial planning services.
Understand What the Next-Gen Client Needs
If young people don’t want your core service, investment management, then why should they care about add-ons? In my eyes, it’s because they’re already making financial decisions that will shape the rest of their lives. High earners who aren’t rich yet (HENRYs) might not have significant assets to invest, but they’re figuring out student loan debt, homeownership, insurance, and retirement accounts. They need help piecing together the full financial puzzle. That’s why I think that financial planning, including tax and estate planning services, can strongly appeal to them.
Financial advisors with a customizable “menu” of services could also capture their attention. Gen Z and Millennials are familiar with and have embraced the subscription model. They pay for streaming services, gym memberships, and more. Meet them where they are: Offer specific financial planning services as independent subscriptions. If HENRYs are paying out-of-pocket for one service now, they could return as full-blown investment clients down the road.
Adapt to a Changing Clientele
You might want to expand your financial planning services. But how? It takes time, money, and effort to revamp an independent practice. Yes, you’ll need to tweak your business — packaging, pricing, and process. But your work will pay off. A little help can also lighten your load.
Don’t reinvent the wheel. Figure out who’s doing well with next-gen clients, and learn from them. Advisors tend to work in isolation, but I would encourage you to seek conversations with your peers. Hear where they’ve already succeeded, and ask how they plan to grow further. Reach out to professional contacts, gather insights from mentors, and attend industry events. Inspiration comes from learning and building strong relationships.
