While baby boomers have been the foundation clients for many financial planning businesses, it is becoming increasingly important for businesses to turn their focus toward to the next generation of emerging investors. The over 65s are the fastest growing age group in the country and, as a country, we stand on the cusp of the greatest intergenerational wealth transfer in history.
Strategies which introduce you to the children of your clients will let you take advantage of the opportunities available from this. Here are five different ways you can open the doors to your next generation of clients.
Develop a family tree, either at the first meeting or a part of the ongoing relationship. For older clients this should include siblings as well as children and grandkids. This should uncover many conversations and ultimately lead to referrals from your clients to the next generation.
To help take the first steps to provide advice for family members, create a tailored advice pack for your clients to give directly to their children (and even grandchildren). This is a good first step for potential clients to understand the benefits of quality financial advice.
Seminars and meetings
Take the opportunity to invite your client’s family to join them. This could be in the form of an annual seminar on topics more relevant to the children, such as superannuation or insurance. Alternatively they could join a meeting with just you and your client. Either way, this is a good opportunity to show extended family to see what financial planning is all about, and how the right advice will help them achieve their future financial goals.
As a part of running your practice, note down important dates of your clients and their family. This goes beyond birthdays to such things as wedding anniversaries. Enquiring about these occasions will keep the door open to further conversations with these people.
Family advice model
One step further, consider introducing a ‘family advice fee’ which lets younger generations access advice at subsidised, or discounted, rates.
Not only will these engagement strategies help you create a relationship for future financial advice, they can also help make the right decisions for your existing clients. Indeed, some of decisions are better made with the next generation including business succession planning, planning major purchases – or the sale of the family home, the most tax-efficient way to transfer assets, or the ongoing control of your client’s assets through testamentary trusts.
While baby boomers have been the foundation clients for many financial planning businesses, it is increasingly important businesses appeal to the next generation. This will often require proactive steps to reinvent your practice, from how technology is used, the value proposition and pricing models – or even pricing itself.
However, the financial needs of baby boomers’ children, such as risk insurance solutions, mortgages, cash flow management and maximising super are very different to their parents, in some ways may make it seem like ‘back to the future’.
“I have been with Capstone for over three years and have found them refreshing to deal with. They help you become the best version of your business. I can wholeheartedly commend Capstone to any planner.”
Bronson Financial Services
“At a time of industry upheaval, the support of Capstone has been a godsend. Everything they promised they delivered.If you are looking for a new licensee you cannot beat the Capstone service offering."
Canyon Financial Planning
“Capstone Financial Planning should be at the top of your list for a Licensee. Grant and his amazing team give a down to earth and personalised approach to supporting practices.”
“Capstone have some of the highest quality individuals in their team and it’s a pleasure to benefit from their insight and assistance. We really can’t recommend them enough to anyone considering a licensee.”
Strategic Retirement Solutions
“I recommend Capstone to any adviser seeking to 'go out on their own'. They are a fabulous licensee!”
Everalls Wealth Management
“With Capstone I can operate my business free from conflict. They have no in-house products, a flexible APL, and an extensive list of SMA solutions. I recommend Capstone highly.”
“I can highly recommend Capstone for planners seeking an independent licensee that’s not in your face but provide quality support services. Their service and support is second to none and has allowed us to concentrate on providing our clients with a premium level of service.”
“Having been with Capstone for a number of years, one thing that really stands out is their willingness to help and can do attitude. These are qualities we really appreciate.”
“The team at Capstone are all genuinely really good people. They are remarkable with their service culture. They really do care what you think, and they are genuine about our joint success into the longer term.”
Benchmark Financial Planning
“During times of change, it has been reassuring to be with a licensee that regularly engages with advisers and takes feedback seriously.”