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Serving Young Adults, Couples & Families

Like many planning and advisory practices today, you may be concerned about serving the needs of the next generation of clients – young adults, couples and families.

You know that if you don’t connect with them early in their adult lives, you may miss the opportunity altogether as they engage with someone else or even use online resources for financial help and advice.

And yet, you also know that many young families have minimal needs for asset management. At least, their asset management needs are minimal by your standards since this is likely how your compensation is calculated.

What kind of help do these young individuals and families need?

  • Basic budgeting
  • How to manage/minimize debt, including student loan debt
  • Decisions on buying versus owning and new versus used (home, automobiles)
  • How to pay for wedding and honeymoon expenses
  • Whether or how to merge their finances
  • How starting a family is likely to impact their finances
  • When and how to start saving for education expenses
  • Decisions relating to healthcare expenses and insurance
  • When and how to buy life insurance

When you think about it, there is a lot they need to know, and many have had little in the way of personal finance education – at home or at school.

So as a business-minded financial planner or advisor, what can you do to help these young individuals and families even though they may not be profitable for you, at least in the beginning?

  • You could hire a NextGen planner or advisor, pay an entry-level salary and give them an opportunity to develop business with the next generation of clients.
  • You might develop a fee-for-service pricing structure to receive a reasonable level of compensation for the planning help they need.
  • You might provide help for the adult children or grandchildren of your existing clients at no additional cost, based on the revenue derived from the parents or grandparents.
  • You could decide that you will help a certain number of young individuals or families pro bono or as an investment for future business opportunities.

No matter how you structure this aspect of your business, it’s important to find ways to leverage resources that can provide these young clients the help they need in ways that minimize the time you spend one-on-one with them. Here are a few ideas:

  • Create your own branded guides and checklists. Your branding is important because you want to provide your perspective and guidance, as opposed to the generic resources they might find online.
  • Host workshops and webinars that speak to the issues that concern them or where they need education.
  • Use video conferencing for your meetings as a real time-saver for you and for them.
  • Create a newsletter for your young adult clients. It doesn’t have to be frequent nor on a specific timetable. Focus on timely issues and provide your own perspective so they get your point of view.
  • Promote your expertise in addressing their financial challenges by creating an online resource center for young individuals and families linked to your website.

By using a little creativity in your approach to serving young adults, couples and families, you can strengthen relationships with your existing clients and build new ones with their offspring, providing long-term value for them and business success for you.

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