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How to provide generational advice for Millennials

  • To understand how millennials think.
  • To gain an understanding of how to speak with them.
  • To learn how they will interact with advisers.
CPD
Approx.30min

So what can we do to use new technology and regular engagement to become the adviser of choice for millennials?

Generational advice 

Millennials trust their parent’s advice on financial matters above all sources including social media, which is why generational advice should be a key part of any service proposition. If we are engaged in a positive manner with their parents then we have a greater chance of a future relationship with millennials as their lives evolve.

What is Generational Advice? 

If an advisory business has done its job properly for a client, then issues such as inheritance tax planning, life and critical illness protection and pension planning will have all been addressed in such a way that the client was happy and willing to have paid a fee for ongoing service and advice.

But what happens when one of life’s eventualities occurs and the client dies? Where does any inheritance go? How aware are any beneficiaries of the advice and service that’s been provided?

Are the beneficiaries your clients and if so, do you have any influence over where the inheritance you’ve helped create or protect will be invested in the future?

More importantly, your client’s ongoing advice charge has died with them - how will your business replace that revenue stream? Are you a true generational adviser or do you just give advice to the first generation?

Conversations about multi-generational planning begin with the first generation. However, true generational advice is all about the creation of an estate plan.

The success of an estate plan can depend on three factors:

  • A good understating of the clients’ aspirations and goals.
  • Whether the details of the estate plan have been properly communicated to family.
  • The collaborative involvement of the other providers of advice to the family such as Solicitors and Accountants is essential and goes a long way to establishing long term relationships that can go beyond just generational advice.

Millennials distrust financial institutions, perhaps a hangover from the economic turmoil of their formative years. However, they do trust individuals who showcase and promote a tangible financial professionalism.

Any marketing to millennials needs to focus on not just opportunities but on the professional DNA of the people who advise on these.

Technology has moved at such a pace that any business who does not have a mobile friendly website or a social media presence is at a clear disadvantage with millennials.

Relationships with Millennials are about ensuring your business has a social media element which can be used to engage, inform and educate.

One way to do that is through business blogging.

What is business blogging?

A blog is a web page that is usually a short, impactful regular view from an individual or a company. 

Blogs have boomed in the last 13 years as the number of weblogs has grown dramatically from a few thousand to more than 100m.

There are two main types of blogs: