Advisors who want to work with the next generation of millionaires will need to roll up their sleeves.
Members of Generations X and Y – people between 23 and 48 years old – who have
“Wealth managers who want to work with this group are going to have to do more than investment management,” says
Gen X/Y millionairesaverage 30 trades per month, according to the Fidelity Millionaire Outlook, and have the most positive financial outlook in the six-year history of the study. In addition, 61% of Gen X/Y millionaires make their own investment decisions, but work with at least one advisor for a second opinion.
Younger millionaires also rely on financial advisors for longer-term planning and are not as reliant as their older counterparts for advice on investment strategies, the survey shows.
Need for Planning and Philanthropy
While 73% of older investors receive general investment and portfolio management from their advisors, only 48% of Gen X/Y millionaires do. The younger millionaires are more likely to be interested in longer-term services, such as estate planning, gifting strategies, charitable giving and planning and retirement planning.
While the next generation of millionaires are more likely to feel wealthy than baby boomers – and own more vacation homes, boats and country club memberships – they are also more generous, averaging
Younger millionaires are also more likely to volunteer or serve on the board of a charity, the study finds.
This is a group of givers,” Oros says. ‘”But they want input from advisors, who should be prepared to change their style of communication if they want a relationship with this type of client.”
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