Early in my career, I was taught that a great referral isn't necessarily sitting across the table from a prospect it might be their son or daughter, someone you haven't met yet, someone who will one day inherit the money you've spent years helping grow. That lesson has shaped everything about how I practice. Because here's a hard truth most advisors won't say out loud: we are not nearly doing enough to engage the next generation, and the industry is paying for it every time a wealth transfer happens.
The retention gap is real, and its roots aren't complicated. Advisors who built their books 20 or 30 years ago tend to be around the same age as their clients. When those clients pass, their adult children who are often in their 30s, 40s, or 50s already have their own lives, their own networks, and frequently their own financial relationships. They don't feel an obligation to stay with someone they've barely spoken to. And honestly, why would they?
People gravitate toward advisors around their own age. That's human nature. So if you're not actively cultivating relationships with the heirs of your existing clients the children, and in some cases grandchildren you're leaving the door wide open for someone else to walk through it the moment those assets change hands.
My first firm was exceptional at training advisors to prospect and ask for introductions, and that discipline is ingrained in me. One of the best opportunities to plant seeds for multigenerational relationships is a moment most advisors completely overlook: the account opening process.
When a new client agrees to work with me, many advisors in a busy practice hand that intake process off to a team member. That's fine operationally, but it costs you something irreplaceable about the conversation. When I'm gathering beneficiary information, I'm also learning who matters most in that client's life. Their adult children, their siblings, their parents. I ask what those children do for work, where they live, whether they have kids of their own, and whether they're currently working with an advisor.
I also ask about the trusted contact person someone we can reach in the event of a client's incapacity. That person is almost always one of the most trusted individuals in the client's life, and often a strong referral candidate. Those conversations plant seeds. One client I met a few years ago had two adult sons around my age. Neither of them had significant assets at the time, but one has since become my client. We've never met face to face, but we talk on the phone regularly. I recently invited him to a client event we're hosting in his city. The relationship is real.
The point isn't to chase every heir as a revenue opportunity. It's to make sure that when the wealth eventually transfers and it will I'm not a stranger to the person receiving it. I know the values, intentions, and dreams of the client who passed. I can translate that continuity to the next generation in a way no brand-new advisor ever could.
Investment management alone is not enough. It can be commoditized; what keeps multigenerational relationships intact is value that goes beyond the portfolio. For younger clients, that often means life insurance conversations. I help them determine how much coverage they need, what type of policy makes sense, and which carriers to consider. I refer them to estate planning attorneys and give them practical resources to get their wills, trusts, and powers of attorney in place. I help them think about college savings for their kids. None of that generates immediate revenue for me. But people remember those conversations.
My fee-based practice also allows me to combine family accounts for billing purposes. If I'm working with a retired parent and their adult child comes on board with fewer assets, I can extend the parent's billing rate to that child a real, tangible benefit they'd never qualify for on their own. It communicates about something important: you're not just a number here. You're part of a family relationship we value.
I also think about technology as part of the value proposition for younger clients. Meeting them where they are digitally, in terms of communication tools and access matters. They're accustomed to frictionless experiences. Advisors who can't deliver that will struggle to hold their attention, regardless of how well they performed for the previous generation.
As dollar values grow, so does the weight of what those dollars are supposed to accomplish. Charitable priorities, education funds, and family intentions don't survive automatically. They survived because someone understood them and kept them in focus through a transition.
I recently sent a client whose spouse is in hospice a checklist we typically prepare after a loss: notifying Social Security, reviewing joint accounts, canceling subscriptions, updating insurance. It's not glamorous. But the financial disorientation that follows a death can compound grief in ways that are genuinely damaging. As advisors, we're in a position of trust. That means having the difficult conversations before they become urgent, so we're not scrambling in the worst moments.
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-Opinions expressed are those of the author and are not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice. Investing involves risk and you may incur a profit or loss regardless of strategy selected. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.
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