The financial services industry has been talking about the Great Wealth Transfer (GWT) for the past 10 years.
At that time, my mother and my aunt's counselors found out about me, and I know them. They have not once contacted me to discuss issues related to inheritance, my family's wishes or to see if I would like to receive their services. As a member of Gen X, I am among the first to earn $74 trillion in GWT funds, yet the advisors most familiar with my family are not trying to make sure I become their client. And I know I'm not the only one – up to 70% of second generation investors do not choose to work with their parents' advisors.
Again, Gen X is the forgotten generation because advisors either don't know or aren't communicating with members of this generation. There have been many articles, white papers and chatter about how advisors can get more millennial clients and what practices they prefer. With respect, advisors should focus on Millennials AND Gen X, not one to the detriment of the other.
Gen X is being overlooked a lot. Only 29% of Gen X have completed an estate plan, according to Faith and Will. Gen X's knowledge of the process of making a will was second worst in a recent Trust & Will study, behind Gen Z. As 58% of Millennials and Baby Boomers were familiar with how to write a will; Gen X was 53% literate.
My generation is also in the worst debt, according to Expert; the average credit card balance in this generation is more than $9,000. These data points show that Gen X is in dire need of financial advice.
Don't Forget Us
This is not a group of individuals that counselors are unable to get ahead of. Time must be allowed to reach out to this generation, especially those with whom advisors already have connections. This may be the case with advisors using technology to provide them with new opportunities Bento enginewhich tells advisors when to engage with their clients and/or family members (provided those people access the advisor's client relationship management system).
Or it could mean taking your existing marketing and better aligning it with Gen X. As a member of the generation and as a marketer, I can tell you that Gen X doesn't appreciate the hard sell and prefers to learn from you. Advisors must show the Gen X investor what they are made of, be transparent and build trust with us. These are the hallmarks to win us over.
What's on the line
As the GWT begins to happen, this is a pivotal time for both Gen X and financial advisors. For Gen X, we need to understand what our parents' wishes are and do our best to make them come true. We also need to prepare to take the wealth that is coming our way, as especially given the debt that some of us are in, a sudden loss would be a drastic change.
For advisors, this is a chance to lock in clients who will gain a significant amount of wealth and need guidance. And, if they learn how to connect with the children of their Baby Boomer and Silent Generation customers, they can take that process and then adapt it to engage with Millennials, Gen Z and others. Advisors can also pass that knowledge on to the next generation of advisors.
Matt Halloran is co-founder and head of relations at Proud mouthpowerful content marketing producers.