Advisors must court their clients’ children to secure assets

November 8, 2018

Much has been made of the massive generational wealth transfer, from aging baby boomers to their millennial and Gen Z children, that’s coming over the next several decades. But in some quarters this $30 trillion exchange is being met with a lot of hand wringing. As big as the transfer is, there’s an equally well-known statistic that usually accompanies any discussion of intergenerational wealth: Two-thirds of heirs fire their parents’ financial advisors shortly after they receive an inheritance, according to an InvestmentNews survey. Why?

“Many of those inheriting children — they’re not children anymore — they already have established relationships with financial advisors on their own and they’re quite comfortable with those relationships,” said Kendra Thompson, managing director with Accenture’s Wealth Management practice. When it comes to inherited windfalls, it “should not be taken for granted by any advisor that they’ll be able to keep that money,” she added.

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