Financial Advisor IQ – Content Page

According to a recent report, financial advisors will benefit from prospecting Millennials, whose wealth is growing faster than any other generation, because most of them want professional financial advice.

Millennials had an average net worth of more than $278,000 last year, representing an average annual growth of 23.1% since 2016, Cerulli says in his new report, adding that the rate was the highest in all generations.

At the same time, 59% of Millennials want more financial advice than they currently receive, according to the report. Plus, most Millennials are “interested in new ideas” — as well as paying for advice, Cerulli says.

Additionally, only 6% of Millennials are purely self-directed investors, according to the report.

Historically, millennials have been heavy users of direct provider platforms, prompting brokerage platforms and digital advice providers to target them as investors, Cerulli writes. But the cohort is now increasingly interested in more personalized advice, according to the report.

“Active interest in their finances also means millennials would be more likely to come to meetings and be open about what they are looking for, which could potentially lead to the development of a strong two-way relationship with their advisors,” said research analyst Cerulli. John McKenna said in the report.

“Caring for millennial clients during their wealthy years is a largely untapped market for book growth advisors. It is also a customer base that could be loyal for the next 40 years if an effort is made to integrate them early,” he added.