Only 13% of adult children would use parents' adviser: Cerulli

Only 13% of adult children would use parents' adviser: Cerulli
Almost 9 in 10 said they never even considered it.
MAY 09, 2019
Here's a sobering statistic for advisers who believe they will serve the adult children of aging clients — only 13% of affluent investors report that they choose to work with that adviser, according to new research from Cerulli Associates. Equally discouraging, perhaps, is that of the remaining 87% of investors who report not using their parents' adviser, 88% of them indicate that they had never even considered doing so. (More:High-net-worth investors not impressed by mobile wealth management apps) "By expanding its network to encompass the next generation, a practice not only increases its retention opportunity at the point of wealth transfer, but also creates the potential for referrals from the heirs whose peers may have assets in transition as they move between jobs in their careers," said Scott Smith, a director at Boston-based Cerulli. When respondents who received an inheritance were asked what they did with their funds upon receiving them, 20% of recipients indicate that they maintain a relationship with the same firm, while 36% moved the assets to be managed with the rest of their portfolio, and an additional 19% moved to a new adviser or to a robo-adviser platform. (More: Improving the efficiency of wealth transfers) While younger investors may not currently fit the practice's targeted client profile, "there is a very high correlation in wealth outcomes among successive generations," Cerulli said in a release. "By combining personalized advice at periods of crucial need with digital advice tools, practices can substantially increase their ability to both retain current assets and attract new flows among the emerging wealth segment."

Latest News

'Bogged down' advisors just want to have fun (again)
'Bogged down' advisors just want to have fun (again)

Jim Cahn, of Wealth Enhancement Group, lifts the lid on his firm's partnership model, his views on RIA M&A, and the widely slept-on reason why advisors are merging into larger organizations.

Vestwell unveils new emergency savings account offering
Vestwell unveils new emergency savings account offering

The fintech firm is cementing its status in the workplace savings space with its latest ESA offering, which employers can integrate into their existing benefits package.

'Money Mimosas' and other ways to show your Valentine financial love
'Money Mimosas' and other ways to show your Valentine financial love

Wealth managers offer unique ideas for couples to grow closer emotionally and financially.

Limra research finds financial confidence on the rise among Black American workers
Limra research finds financial confidence on the rise among Black American workers

Survey findings suggest increased sense of financial security and more optimistic 2025 outlook, while highlighting employers' role in ensuring retirement readiness.

DOGE efforts sideswipe muni bonds backed by federal lease payments
DOGE efforts sideswipe muni bonds backed by federal lease payments

Falling prices for some securities within the $4 trillion state and local government debt market spotlight how the push to shrink spending is sending shockwaves across the US.

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.