Adapting to Survive: The Imperative of Targeting Younger Investors

Dan SolinAdvisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

Dan's new book for millennials, Wealthier: A Field Guide to Financial Freedom, will be published in April 2024 and available on Amazon.

My company has designed many websites for advisors that target various niches. To date, not a single firm has expressed an interest in the one demographic that is the future of investment advice: younger investors (born between 1981 and 2012).

Your choice is stark: Adapt to engage this emerging demographic or risk obsolescence.

Millennial market potential

Between now and 2045, millennials, alongside their successors, Gen Z, are estimated to inherit a staggering $84 trillion. This transfer of wealth, the largest in history, presents an unparalleled opportunity for you.

The wealth surge among millennials

By the close of 2021, millennial wealth had ballooned to an impressive $9 trillion. Despite this burgeoning affluence, millennials account for a mere 14% of advisory clients, exposing a significant gap – and a golden opportunity – for firms willing to bridge it.

The Fidelity study

A study from Fidelity found that advisory firms that have successfully integrated a younger clientele are growing nearly 10 times faster than their counterparts, based on an analysis of 1,501 on-platform custody firms.