3 ways to help Gen Y

How do you convince millenials they need advisors?

1. Find people who are used to getting advice

If a prospect’s parents have an advisor, she’s more likely to understand the importance of having one herself. So connect with children of current clients. Ask if their kids need advice and hold educational seminars for twentysomethings.

For instance, members of a family have been clients for years. The parents have $500,000 with us. Their sons grew up and opened accounts early on, and made regular, small deposits. The elder son, who’s now in his mid-30s, became a radiologist. Within a few years, his accounts have grown to $800,000 because his income has grown exponentially. The other son doesn’t have the same income, but his assets have grown to $95,000. As his income increases, we expect his account will too—at an early age, we instilled in him the value of adding funds each year.

2. Learn what’s important to them

Prove that you can help solve their problems by learning as much as you can about them. Ask open-ended questions, including:

• What are your professional aspirations?
• What are your challenges?
• What keeps you up at night?
• What kind of legacy do you want to leave?
• What would you like to provide for your family in the long run?
• What has your experience with money been like?

3. Show them why they need plans

Explain how you’ll make their lives easier. For instance:

• Saving taxes – Self-employed clients typically have to pay taxes in a lump sum each April (unless they paid in instalments). That’s painful. Show how you can help reduce this bill.
• Emergency fund – Teach them budgeting to ensure unexpected occurrences won’t lead to them dipping into their vacation or down payment savings.
• Estate planning – One of our wealthiest clients explained she didn’t have a will or a POA. She came from a place where such things didn’t exist. Explain that you’ll help protect their children and other family members should anything horrible happen.

Read more: Convince Gen Y to get advice > Caroline Hanna, investment advisor, BA, CIM, National Bank Financial Wealth