Investing in provisions that cater for low net-worth millennials is likely to prove lucrative for financial advisers in the future, according to Alexander Boni.
Speaking to an audience of industry delegates at the joint Financial Adviser and Russell Investment masterclass, Mr Boni, associate regional director at the investment firm, used the old adage of “mighty oaks from little acorns grow” to illustrate the evolution of these individuals into high net-worth clients.
He said: “Smaller clients tend to have simpler financial planning requirements, so potentially have less of a service burden on you and your staff.
“Make sure they are using their Isa allowance; make sure they are making pension contributions. As they progress in life, their needs become more complex. This is when they need more of your time, but at that stage, their assets will be greater and their willingness to pay for advice will be greater as well.”
Speaking at the same event, Mr Boni’s colleague, Nick French, managing director, head of UK wealth management at Russell Investment, explored the steps advisers could take to augment their services to bolster the number of referrals.
He said: “Ask yourself if a client refers your business, what would they say? Give them the words to describe your business.”
He added: “Language is so important, so talk to clients in their own language – cut out the jargon.”
Adviser view:
Claire Walsh, adviser for Brighton-based Aspect 8, said she had taken some of the lessons on board from a Russell masterclass several years ago, adding: “We embedded these and it really did help – our clients appreciated this.”
