The youngest members of the baby boomer generation (ages 40 to 45) have more sophisticated financial needs than their older counterparts. A higher percentage of affluent younger boomers, for example, hold hedge funds, private equity, and futures investments than do the other baby boomer segments, according to a Spectrem Perspective report, "The Barely Boomers: How They Will Impact Future Financial Services."
In addition, one-third of "barely boomers" hold stock options and 30 percent hold restricted stock -- that's more than the other baby boomer segments. Looking at asset allocation, nearly a third of their portfolios is dedicated to real estate.
This presents a unique challenge to financial services providers, according to the study. Serving the barely boomer segment of the affluent market requires advisors who possess a broad skill set. In fact, just 24 percent of barely boomers say they use full-service brokers as their primary advisors, compared to 37 percent for "working boomers" (ages 46 to 60) and 31 percent for "retiring boomers" (ages 61 to 70). That number is also lower than it is for "retirees" (ages 71 and older) at 32 percent. A higher percentage of barely boomers choose accountants (19 percent), independent financial planners (24 percent), and investment managers (19 percent) as their primary advisors than do the other baby boomer segments.
