Filed Under:Life Insurance, Sales Strategies

Advisors look to engage next generation of affluent

More than four in 10 financial services providers to the affluent seek to develop relationships with clients’ children at the start of a planning engagement, new research reveals.

Cerulli Associates published this finding in “High-Net-Worth and Ultra-High-Net-Worth Markets 2013: Understanding the Contradictory Demands of Multigenerational Wealth Management.” 

The research indicates that 40.9 percent of high-net-worth (HNW) providers “seek to involve future generations from the outset of the client relationships.” Small, though significant percentages “ask clients and spouses to get their children involved” (27.3 percent) and “hold information sessions with children of current and potential clients, focusing on understanding and managing wealth (25 percent). An additional 6.8 percent develop relationships with clients’ children using other techniques.

“For HNW families, [these techniques] afford patriarchs and matriarchs the opportunity to explain the risks associated with accumulating wealth, as well as the risks that need to be hedged against when preserving wealth,” the report states. “Although somewhat self-serving for HNW providers and their advisorforces, [the techniques offer opportunities] to strengthen the relationships with the parents and heirs.”

The report examines the U.S. high net worth ($5 million-plus in investable assets) and ultra-high-net-worth (greater than $20 million) markets, including their size, structure and developments. The study also probes vehicle use, fees and services provided at family offices, wirehouses and private client groups.

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Nichole Morford

Nichole Morford
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