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Ignoring Young Investors Could Put Your Firm's Longevity at Risk
Source: FI Practice Management & Consulting Client Insight Tool, 2022.
Young investors will soon represent a preponderance of the population and wealth
Gen Y and Gen Z now represent 47% of the U.S. population (U.S. Census Bureau, 2021),1 but only 14% of advisory clients.2
They already inherit an estimated $541B each year (30% of the wealth transferred annually today).3
Many young investors are pro-advice
Millennial and Gen Z clients can be an engine of growth
Contrary to the beliefs of many advisors, young investors can be attractive and profitable clients, especially over time. They value and are willing to pay for the advice of professionals, are motivated to improve their finances, prefer to consolidate assets with a primary advisor, and are loyal clients. They also are at ages when they first start to establish a financial advice relationship.
Gen Y and Gen Z are redefining the advice model
Millennials and Gen Zers are leaning into their finances and redefining what is valued in an advice relationship. They engage with their money, seek whole-life advice, value an accountability partner, want to achieve financial freedom and gain access to new investments. They don't necessarily want or need the more traditional advice model that many Baby Boomers prefer.
85% of Gen Y and Gen Z would like some form of behavioral coaching from their advisors to keep them from making mistakes, procrastinating, or making rash decisions.4
75% of Gen YZ say: “I plan to save as much as possible now so I can become financially independent as early as possible and focus on what I really want to do in life” versus 57% of Baby Boomer+ (who are not retired).4
78% of Millennials say they are “always looking for new investment ideas.”6
Start winning their business
Will you be the advisor they turn to?
It's Time to Change Your Mind about Young Investors
- The Why: The ways that Gen Y & Gen Z can help grow your firm
- The Who: The insights that can make you indispensable to them
- The How: The steps you can take to start winning their business
Are You Ready to Serve the Next Generation of Investors? We can help.
Fidelity's Practice Management and Consulting team can work with you to build strategies to help target, engage, and grow relationships with the right young investors.Learn More