The Wealth Management of the Future Roundtable

Why NextGen advisers need to form connections with NextGen clients

Nov 20, 2013 @ 12:00 am

Runtime: 3:52

Amy Webber of Cambridge Investment Research on why itís important for young advisers to engage with NextGen investors so they can be situated as the ďadviser of choiceĒ once a generational wealth transfer occurs.

Video Transcript

The most important thing to think about as the industry evolves in terms of wealth management for us is really a focus on next gen. Next gen adviser and what the next gen adviser needs from the broker-dealer as well as the next gen investor and what the investor needs from the adviser and then therefore the role that the broker-dealer can play. We've spent an awful lot of time having conversations with our next gen advisers already, generation X and Y. And it's interesting. There are a few that are working most heavily with next gen investors. But most of them still think like 50 or 60 something, right, because that is the clientele that they're working with most. And so, the heavy lifting for us is the broker-dealer and as the consultant for them has been to talk to them about what the wealth management arena is gonna demand from them as they begin to work with people their own age instead of the clients that they're working with today and then giving them the tools to engage with the next gen investor more from that generational planning perspective and make sure that they're connecting with those next gen investors in such a way that they are able to build a relationship so that they're the adviser of choice for those investors when they inherit the wealth. The advisers and I think the investors in the end are putting a lot of demands on us to deliver information, access to tools, financial planning tools, tools that they can do on their own on demand from anywhere so really faster, better, and free, right? Low cost. I mean I think that's gonna be the challenge for all of us, is to figure out and continue to evolve in terms of giving them access to their own information, industry information, industry education and do it whenever they need it literally on demand. I think if we work with our own technology and technology partners that kind of embrace the industry and the future the way that we do, right, we've got to find the right partners. I think that we can deliver a low cost model, but then the advisers on our heavy lifting is helping the advisers figure out as that validator and simply as that consultant how do they add value then to the client if the client has access to all of that information on their own. And it's gonna come down to their relationships. I think we have to help our advisers figure out that they are life consultants, not just about investments, not just about the financial side, but how that financial side-- I really think the future adviser potentially has to think of themselves as therapists and they're gonna have to work with these multigenerational families and build a relationship so that the family thinks of them as one of the family and that's where their value proposition is more than simply, you now, selling the insurance product or the investment or even a base-- you know, the comprehensive financial planners that we have today. I think they too are gonna have to broaden their scope and be much-- a much bigger part of the life planning process than perhaps any of us though we would ever be.


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