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35
Four-Corner Marketing
Marketing to the Millennials: A Junior Advisor’s Game?
NICOLE LAMOUREUX-MILLER
I suspect you’ve heard a lot of statistics about the emerging
population of young adults commonly referred to as
Generation Y, or the millennials, their potential for wealth,
and their need for financial planning and guidance.
The millennial marketplace is 80 million strong. In
short order, this group will make up a large chunk of the
workforce—not to mention the saving and investing
force—of the country. Financial advisors looking to grow
their client base may see this as a compelling opportunity,
but if you’ve already put in your time doing seminars,
joining the Elks, and knocking on doors, you may not
be inclined—or ideally positioned—to take a rider on a
long-term payoff. You’re certainly not alone in that regard.
In fact, as of July 2013, more than 50 percent of
Commonwealth advisors are baby boomers. Approximately
45 percent of the total number of clients of Commonwealth
advisors are—you guessed it—also boomers, while another
32 percent are members of the older Silent Generation.
Only 6 percent of the clients of all advisors at Commonwealth
are millennials.
This isn’t altogether surprising; it’s common for an advisor
to head toward retirement alongside the bulk of his or her
top clients. Still, it’s a situation that has left some clients
asking, “What will happen with my financial plan when
you retire?” and many advisors worrying what to do with
clients who won’t suddenly stop needing financial guidance
when that day arrives. These concerns leave little room
for a younger generation to enter the client roster.
Further, many advisors are simply not convinced that
working with millennials is worth the effort. But consider
this: Although these investors may not have the level of
investable assets of your more mature clients (yet), they
are set to be the recipients of the largest wealth transfer in
history—and their potential for growth is great. As more
of your aging clients start drawing down the wealth they’ve
accumulated, what effect will that have on your business
revenue? What about your own retirement income? If your
succession plan involves selling your practice, what are
the long-term prospects of a book with a healthy base of
mature, moneyed clients, mixed with a growing younger
contingent versus one that is primarily made up of retirees?
As your baby-boomer clients settle into
retirement and start drawing down their
assets, it may be wise to start prospecting
for new business from younger generations.
SILENT GENERATION
(1925–1942)
(1943–1964)
BABY BOOMERS
32%
Who’s Your Client?
How does the client base of Commonwealth advisors break down?
These younger clients
will be the recipients of
unprecedented wealth.
Are you ready to
capture your share?
››
45%
16%
(1965–1980)
GENERATION X
6%
(1981–2000)
GENERATION Y
Source: Commonwealth
