The key for financial advisors is finding a way to capture that wealth—and the loyalty of those soon-to-be-enriched Generation X and Generation Y investors. They may not be the most desirable client segment right now, but they will be important in the years to come.
Despite entering the workforce at the start of the recession, Gen Y investors, also known as millennials, still have a reputation as an entitled generation. The key question revolves around how this plays into their expectations around money, as well as how much they may inherit.
Meanwhile, Gen X investors have always wanted to forge their own way. However, are they secretly waiting for their parents' inheritance to "catch a break," as dark as that may sound?
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While there's big talk around the amounts the baby boomers will leave behind, what happens if those boomers, in their zeal to live forever, spend it all?
The questions are generational, and the answers are quite personal. Financial advisors are in the best place to facilitate the many conversations.
Whether your clients represent the older or younger generations, it is important to uncover the expectations of both the parents and their children. Understanding how each generation thinks and communicates can help you facilitate what could otherwise be an uncomfortable discussion.