Financial Adviser Millennial Retention Predictor 

Theory-

Changing wealth practices are currently implying pressure on financial advisers. This has caused a massive shift in high turnover within advisory practices. With the largest transfer of wealth underway we believe there is massive disruption in the advising business in the horizon. Previously surveys have been given to estimate how “millennials” feel about their advisers, unfortunately the results have not been flattering in favor of the business. We believe some of the main causes of this are due to the communication and execution of advisers practices that are currently obsolete. We believe that an evaluation of current clients VIEW’s can help assess and navigate advisers to higher retention rate. The net worth of the millennial generation is projected to increase from $4 trillion in 2015 to $20 trillion by 2030. But according to Jefferson National’s 2016 Adviser Authority, a comprehensive survey of 1,400 IRAs, fee-based advisers and individual investors, nearly half of this generation does not work with an adviser to manage their finances.

 

Within the underlying sentiment of the industry we believe there are core KPI’s advisors can highlight to assess a potential client turnover rate for individuals under the age of 30’s. With advisers focusing on core KPI's we believe we can limit the excessive expected turnover with in the business.

 

 

 
Photo by RichVintage/iStock / Getty Images
Photo by RichVintage/iStock / Getty Images