|If You're Banking On Not Having To Deal With The New Generation Of Investors, You May End Up Retiring Sooner Than You Think|
|Monday, June 11, 2012 09:55|
The next decade in the wealth management industry will see even more change than we’ve seen in the last several years. The impact of new generations of wealth owners will change your business whether you want it to or not. It’s not a choice you have to make. It’s going to happen. Your choice comes down to whether you will look for and act on the opportunities presented by these changes…or not.
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At this point, the Boomer generation likely makes up the core of your client base. But as Boomers continue to age and their needs change, they will be handing off leadership and assets to next generations. They won't wait until they die to do that.
Gen-Xers will make up the next wave of retirees and their numbers are significantly smaller than their Boomer parents. The fact is that the percentage of wealth controlled by investors age 50 or younger has grown to 37%. Ninety-percent of the next generation of inheritors are not planning on sticking with their parents’ advisors. And even though the Echo or Millennial generation is the generation born completely into a wired world, Gen-X is the generation that grew up with it.
If you haven’t already decided to acclimate your business to the new models of communication and interaction demanded by these younger investors, it’s not too late. All you have to do is focus on items that will be of interest to this younger crowd and learn how to deliver that information to them through different media.
Your website needs to be engaging. You need to be able to deliver updates and educational information through social media outlets. As money shifts to these younger generations, your need to be agile in the way you communicate with them will increase. Already, a full 21% of investors are between the ages of 25 and 41. They’re creating their own wealth on the internet as well as inheriting wealth from their parents.
Only 7% of advisors are in this age group. The opportunity just from a numbers perspective is something you can no longer afford to ignore.