Wealth management firms, banks and online trading firms are pursuing the huge opportunity that exists with the transfer of wealth between the generations. In the pursuit of maintaining these assets in house between generations, the approach that firms have taken is the costly option of using online tools to entice younger investors into becoming new clients. There may be a better way. It may be as easy as making a connection with them through their parents (existing clients). For an adviser, the best way to make this connection may be to discuss retirement and later life issues with your existing client.
Please have a look at this article featured in the Retirement Management Journal that discusses the full story of how the fact that 90% of asset transfers between generations leave the advisor and investment firm of the parent due to the inability of the advisor to forge a relationship with the younger generation. However, there is a solution – playing a role in creating “the Talk”!