Vanderbilt Insights

Next-Gen Is Ready to Give Generously

Will you still be advising them?

Randy A. Fox | Jan 20, 2023

An estimated $84 trillion in wealth is expected to be transferred between the generations over the next two decades, and research shows three in four young adults (73%) plan to turn to a financial advisor “as one of their first orders of business” after inheriting.

While that sounds promising for many of you in the advisory world, a few things about this data should concern you.

First, the vast majority of young people don’t plan to start working with an advisor until after receiving their financial windfall. Instead, they should start working with an advisor well before they receive it so they’re optimally prepared for the responsibility that comes with that windfall. That’s where you should be stepping up proactively. Don’t wait for families to ask you.

Second, don’t assume your clients’ kids will automatically start working with you. Only two-thirds (65%) of young adult respondents to a recent FreeWill survey said they’re likely to use the same advisor as their parents use, and nearly one-third (31%) hadn’t even met with their family’s advisor before.

Third, families are much more geographically dispersed than they used to be. Unless you’ve developed a relationship with your client’s children, there’s little chance they’re going to work with you from say, California, if you’re based in New York.

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