Wealth Management
/ Planning
14
For Advisor Use Only
March/April
2014
want someone with minimal requirements who’s willing
to put a plan in place to get them on track. They’re likely
to favor advisors who are adaptable, connected, and willing
to help them get organized. Keep in mind that the first
financial advice they receive may have the biggest impact,
turning them into clients for life.
In working with millennials, you may want to consider
providing financial planning services under Commonwealth’s
Wealth Management Consulting Agreement. The Wealth
Management Consulting program allows IARs/RIAs to be
compensated on an hourly or flat-fee basis for any financial
projects completed for a client. Areas of planning may
include budgeting and cash flow analysis, investment tax
analysis, education planning, and estate planning. You can
design your own fee structure to fit the client’s needs,
whether flat-rate, hourly, one-time, or recurring. For more
information, visit the Client Relationship Management
section of the Financial Planning Playbook and click on
Become a Pro > Wealth Management Consulting.
There’s no doubt about it: whether or not you adopt a
new fee structure, building relationships with millennial
clients is likely to require some adjustments on your part.
But reaching out to these prospects before other advisors
begin competing for their business is almost certainly a
wise investment.
Rose Watson is the manager of advanced planning. She is
available at x9891 or at
.
While millennials have fewer assets than older
generations and may have immediate cash
flow needs, the average cash allocation is high
(42 percent) even among older millennials who
have at least $100,000 in assets.
— UBS Investor Watch
