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How Financial Advisors Can Win The Great Wealth Transfer

One of the largest wealth transfers in history, this shift is predicted to significantly influence the state of the U.S. economy. Here’s what financial advisors can do to prepare, and even win, during The Great Wealth Transfer. 

What is The Great Wealth Transfer?

The Great Wealth Transfer refers to the passdown of finances from the Baby Boomer generation to their children and grandchildren: Millennials, Gen X, and even Gen Z inheritors.

And it’s no small amount: As much as $68 trillion will be passed down from 45 million US households over the next 25 years.

This transfer is predicted to dramatically impact the U.S. economy, and of course the wealth management industry as a whole.

Why The Great Wealth Transfer matters for financial advisors 

Financial advisors are accustomed to serving a certain client base, with long-standing practices of portfolio allocation including the 60/40 portfolio, and of course a focus on traditional investments.

But traditional isn’t necessarily the name of the game for newer generations of investors.

In fact, research from Vericast shows nearly half of consumers are turning to friends or family for financial advice, while less than a third are seeking it from professionals such as a bank, credit union, or financial advisor.

And if you think that’s surprising, younger generations are even turning to TikTok and YouTube for financial advice before turning to a professional.

Millennial investor inheriting wealth via The Great Wealth Transfer.
Source: Unsplash

How financial advisors can retain generational wealth 

As a whole new wave of clientele comes in, financial advisors’ strategies need to adjust.

According to Nasdaq, reports state that anywhere between 45 to 80 percent of heirs will likely switch financial advisors once their money is inherited.

But for advisors who are willing to meet their new clients’ expectations: There’s no reason to panic. In fact, preparing ahead of time can help give your business an edge during the transfer to score even wealthier clients.

Here are two key ways advisors can score the trust and business of younger generations:

And neither has to be difficult. 

While alternative investments are more complex in nature than their liquid alternatives, there are simple, scalable ways for financial advisors to include them in their practice.

At AltExchange, we automate alternative investments including private equity, real estate, hedge funds, startup investments, and more, through our world-class AI technology platform built for financial advisors.

To start preparing your advisory practice for a new generations of investors, please book a call or schedule a demo.

Schedule time with our team