Understanding Generational Differences and Their Potential Impact On Your Firm's Future

Sponsored by Fidelity Investments

The times, they are a-changin’.

Bob Dylan certainly put his finger on it in this baby boomer anthem of 1963. Fifty turbulent years later, the boomer generation – the wealthiest ever – now anchors most advisors’ books of business. But now that, too, has begun to change as more of the nation’s 76 million boomers retire, drawing down billions of dollars in assets to pay for Caribbean cruises, hip replacement surgery, down payments to help their children buy a home, or gifts for their grandkids.

With billions of dollars in baby boomer assets scheduled to pass on to younger heirs in the near future, it is becoming increasingly important for advisors to consider establishing relationships with clients’ children and grandchildren, who, in addition to potentially inheriting assets, are also generating their own savings and wealth. At the same time, younger advisors who are looking to grow their book of business may want to find ways to establish credibility with baby boomers.

This article will examine ideas to help you understand what makes investors of all ages tick and how you can potentially tailor your communications to meet each generation’s unique needs. Whether you are an older advisor looking to establish relationships with your clients’ children, or a junior advisor looking to convince older clients that you have what it takes to manage their wealth, this series will provide insights designed to help you communicate more effectively with investors of all ages.

Key Takeaways:

  • To appeal to the unique preferences of each generation, consider ways to tailor your communications strategy accordingly.
  • More than $18 billion will soon transfer from baby boomers to younger generations. Advisors need a strategy to retain or capture those assets when they pass to heirs. [1]
  • Consider acting now to establish relationships with your older clients’ children and grandchildren.
  • Read the full article here .

    Please view the white papers: " Exploring Wealth Potential Across the Spectrum of Investors "; " 2013 Fidelity® Millionaire Outlook Executive Summary: Gen X/Y Millionaires Not Sitting Idle " and " Considerations to Help Increase the Emerging Affluent’s Wealth Potential"

    [1] Internet Business Solutions Group (IBSG) at Cisco Systems, Inc., 2011, “Advisory industry frets over serving Gens X&Y,” InvestmentNews,April 2011. DISCLOSURES
    For Investment Professional use only. Not for distribution to the public as sales material in any form.

    The information contained herein is as of the date of its publication is subject to change, and general in nature. Such information is provided for informational purposes only and should not be considered advice. Fidelity does not provide advice of any kind. This information is not individualized and is not intended to serve as the primary or sole basis for your decisions as there may be other factors you should consider.

    Cam Marston in an independent speaker, unaffiliated with Fidelity Investments, and does not make representations on behalf of Fidelity. Cam Marston’s input herein does not suggest a recommendation or endorsement by Fidelity. The information provided by Cam Marston is subject to change. There is no form of legal partnership, agency, affiliation, or similar relationship between Cam Marston and Fidelity Investments, nor is such a relationship created or implied by the information herein.

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