Although most financial advisors are familiar with Millenials, not many are actively pursuing this generation. This term “Millenials” refers to anyone born between 1977 and 1995. While Boomers may initially seem more appealing as prospects, Millennials actually bring some strengths to the table that suggest advisors should take a second look.
To start, this group is quite large. Studies and surveys peg it at about 77 million people, which equates to just under 1/4 of the total US population.
The second reason advisors should concern themselves with this group is because they’re the future. Even though there are plenty of advisors who are happy to make their bread and butter with Boomers, the reality is that the Boomer generation isn’t going to be around forever. As a result, it’s crucial for advisors who want their practice to stand the test of time to start making inroads into the Millennial generation.
Common Myths About Millennials
Many advisors have likely shied away from Millennials because of the prevalence of several myths. The first myth is that Millenials are broke. One reason this myth may have developed is that many Millennials were severely hit by the recession at the start of their careers.
However, just because this generation has faced some adversity doesn’t mean they’ve given up. On the contrary, Millennials have a larger percentage of individuals with over $2 million in assets than Generation X. Since Generation X’ers (1965-1976) are older than Millennials, this fact comes as a surprise to many advisors.
Another myth is that Millennials don’t value education as much as other generations. But once again, that myth has no basis in reality. Millennials are actually the most educated generation! 23% have at least a bachelor’s degree, and 39% are still pursuing some form of higher education.
The next myth is that most Millennials aren’t thinking about financial planning. The reason this myth is especially interesting is that there’s some truth to it. Depending on which end of the Millennial spectrum they fall, individuals in this group are 34-41% less likely to have contact with a financial advisor than other generations. A common reason is that Millennials are comfortable using technology to manage their own planning.
How Can Advisors Connect with Millennials?
As you may have surmised, advisors who want to earn the business of Millennials have to be very proactive. And one way to do that is by utilizing technology. Although simply posting social media updates all day isn’t going to do much for you, making content marketing a key strategy for your business can work extremely well.
Since Millennials are comfortable searching online for answers to questions about their finances, producing content that answers those questions is a great way both to increase your visibility among this group, as well as to start building a reputation as a trusted source of financial advice.