Working with Millennial Clients

As a financial representative, you're aware of how different demographics can impact a client's attitude and approach towards financial planning and investing. With millennials entering and maturing in the workforce, many are seeking help and support from investment professionals to better manage the financial security of their present and future. With unique character traits, experiences and interests, working with this generational group can be a challenge. Review the following considerations to get a better picture of how to engage and find success with millennial clients.

Understand Generational Behavior

According to a study from Money Pulse, millennials seem to be more hesitant about investing in the stock market, likely due to experiences in the 2008 recession, hefty student loans, or feeling like they need to accumulate wealth before they can take the risk of investing. Taking generational trends like these into consideration are important to understanding why your client might be more or less willing to pursue a certain financial avenue. Take advantage of tools like Fund Analyzer, Accrued Interest Calculator and the Savings Calculator to analyze your client's assets and make the best investment recommendations.

Address Debt

According to the National Endowment for Financial Education, the current generation of young adults has taken on significantly more debt compared to Generation X, while simultaneously experiencing a decline in being accepted for credit cards after 2004. While this debt isn't from one source alone, most can be accounted for by student loans or credit card debt. It's likely that millennials will be looking for investment options that maximize their opportunity to free themselves from long-term, financial strain.

Emphasize the Importance of Retirement

Many Americans, including millennials, do not keep frequent tabs on their investments and retirement accounts. In order to help younger clients make the best long-term financial decisions, it's important to clearly communicate the value of starting early to build a livable retirement savings. SII Investments offers a variety of helpful tools to assist you in financial planning for retirement:

Understand Higher Education Planning

Millennials understand the importance of a good education and many are pursuing bachelor or master's degrees. Affording college is difficult, especially with today's expensive price tag on getting a degree. According to a Pew Research study, 36 percent of millennials cite not being able to afford college as the biggest reason for not completing a degree. As a financial advisor, you'll need to be equipped to understand how to advise young adults on making smart education choices, including taking on or paying off student debt. Check out some of these tools for approaching this important life stage:

As an SII Investments financial representative, you're provided the tools and expertise you need to best communicate, collaborate and plan with this unique generation. Learn more about approaching clients from all life stages like young investors, single parents and retirees on our website. Changing broker-dealers? Contact us to learn more about how we're rooted in service, innovation and integrity.