A recent article summarizing a report from Forrester, a research and advisory firm, outlines some key trends that may prove to give advisors a headache in 2025. One such trend, The Great Wealth Transfer, is causing advisors concern as $84 trillion is set to transfer to Millennials and Gen Z—two generations which have different views than their Baby Boomer parents on everything from financial planning and investing to technology and charitable giving. With at least half of North American firms expected to lose assets during this wealth transfer, what can advisors do now to woo these younger generations, retain assets and even gain new client referrals? Read on to find out.
Don’t Underestimate the Importance of Technology
Forrester found that financial services firms must adapt to new technologies—and nothing may drive younger investors away faster than paper-heavy processes that don’t seamlessly integrate a digital experience into their touchpoints. They’re tech savvy, they’re comfortable with change and they don’t have an allegiance to their parents’ advisors. At Foundation Source, our technology is at the forefront of our charitable giving solutions—meaning we think through the efficiency and user experience first (not as an afterthought).
Connect With Them Through Philanthropy
Millennials and Gen Z want to work with advisors who understand them—not just their finances. From family dynamics to their personal interests and values, they’re looking for more comprehensive, tailored advice that holistically considers all aspects of their lives. Philanthropy can be a bridge to building meaningful, lasting connections with them. Our Client Meeting Checklist is a great place to start and includes prompts to help open the door to productive dialogue.
But don’t assume they think of philanthropy in the same ways that their parents might. In our recent report, we found that whether Gen Z or Millennial, their inspiration to get involved in charitable activity is primarily driven by family, but at the same time they are redefining philanthropy. Terms that resonate with them are different. They think of giving beyond financial contributions. And they want to make giving personal. To learn more about ways advisors can capitalize on these findings, be sure to check out our full report.
We believe that while The Great Wealth Transfer has the power to shake up the status quo for financial firms, advisors who are proactive and strategic can surf this inheritance wave and come out ahead.
Looking to grow your practice this year?
Schedule a call or reach us at 800-839-0054 to learn how we can best support your clients who are passionate about philanthropy. Together, let’s #begiving.
