It's that time of the year again where everyone gets to start with a clean slate. Ned Dane, head of private client group at US-based wealth manager OppenheimerFunds wrote an article
late last month on how financial advisers should ring in the New Year.
While the article was for US-based advisers, the recommendations are just as relevant for local advisers. With a solid track record managing just under $300 billion of investor assets, OppenheimerFunds has been around for more than 50 years and is a big advocate for millennial investing. Here are Dane's recommendations on how to appeal to this demographic:
Familiarise yourself with sustainable investing
ESG funds invest in companies with strong ESG practices. Impact investments seek to generate a measurable social or environmental impact along with a financial return. Through research with Campden Wealth, we've learned that wealthy millennials have a strong interest in these products and are looking to their advisers to provide them with investment opportunities.
Develop - or refresh - your social media strategy
I've found that many advisors either lack a social media presence or have a stale online persona, which is understandable considering the restrictions that many investment firms have. But as long as you stay within the boundaries set by your company, social media - LinkedIn in particular - is a great way to have your presence out there.
Make connecting with wealthy millennials a priority
It is absolutely critical to the long-term health of your practice that you cultivate the next generation of clients. We've found that when wealth passes on from one generation to the next, the inheritor often finds a new adviser. But, if you have an existing relationship with your clients' heirs, you can significantly minimise the risk of this happening to you.
Make financial literacy your calling card
Financial literacy can be a valuable tool in your effort build relationships with wealthy millennials. If you do this right, you'll accomplish two key things. First, you'll get to know them as individuals. Second, investing your time in their financial literacy will position you for a long-term relationship with them.
Help the next generation build a network
High-net-worth millennials who come from families with generational wealth typically don't have a broad circle of friends from similar backgrounds. As a result, it may be hard for them to find a safe space to discuss financial issues with their peers. But you may have a book of clients who are similar both in wealth and family situation. This means you're in a unique position to create a network for these young adults.
This is an extract of Ned Dane's article titled '6 New Year's Resolutions for Financial Advisors'