Welcome to the Evolution

A new generation of clients is here – offering incredible opportunity to prepared providers.

Don’t wait for the money. Baby Boomers and the Silent Generation own 74% of financial industry assets. But the aging of that cohort – now all 60+ – has pulled in new players, the adult children. Generation X and older Millennials are increasingly making the decisions about parental assets. Advisors waiting for the actual account transfers to engage NextGen will miss out.

Engage now. NextGen family members are typically not connected with their parents’ advisors – Cerulli says the number is only 19% - and it’s not uncommon for the spouse/partner to be left out as well. As a result, 69% of G2 aged 30-39 and 66% aged 40-49 leave for alternative relationships. And we know similar percentages of unengaged spouses depart as well.

Engagement is triggered – so be ready. We’d like to believe both clients and their advisors can plan for the inevitable challenges of longevity. Most don’t. We refer to those triggers as the "Moments That Matter".  Our entry here now in the market with Merrill Lynch, UBS, DBS, and others is in partnership with Lincoln Financial. 

Read more here

“Protection” is the new “Performance” - G2 engagement starts with helping G2 with the challenges faced by G1. G2 is learning fast that they need to be more prepared. Our research of top advisors reveals “protection” is key. We know GenXers are also:

• More DIY - only 1/3 of moneyed GenX uses financial advisors.
• Native DC and IRA retirement investors - 34% of retirement plan participants with $100+k say the plan sponsor is their primary advisor.
• Digital-first - 71% of GenX prefers to manage finances through a financial app – 2x the boomer rate. Gen2 researches financial information online and eschews legacy media as well as advisors.
• Sandwiched – caring for G1 parents and supporting G3 – 1 in 5 workers is a caregiver and the average profile is a 49-year-old woman. GenX stresses the demands and costs of care – as well as the prolonged-term of care as G1 lives longer.  

Ask My Mom – She’ll Explain It To You

We don’t so much sell to NextGen – we earn NextGen by providing support to immediate needs in addition to our long-term retirement strategies. We have additional research indicating 60% of new advisor hires result from life events. With longevity stretching longer, there are many, many more triggering events in the future for every advisor and every family.  

Read more here

NextGen X NextChapter: Advisor Best Practices for Money in Motion Trigger Events

NextChapter has completed a study of how leading RIA and IBD advisors are successfully retaining Gen1 clients and engaging Gen2 families by leveraging money-in-motion events. Stay tuned as we align product and solutions firms to the learnings from the study and improve opportunities for advisors and their firms to drive organic growth from NextGen.

The insights are powerful – get a little preview from this podcast with @Eliot Weissberg, CEO of The Investors Center.

Listen here!

The Power of Light

Nothing beats a sunrise. Every morning, Mother Nature seems to be challenging us to get up and seize the day. She does it every day. She doesn’t wait for us. But she does light the way. 

Man has tried to follow her example – this is a pretty good effort I caught on a recent trip to Paris and Normandy. 

On behalf of the NextChapter team and our colleagues at Advisorpedia,

Steve Gresham, steve@nextchapterinnovation.com

Scott Bieler, Managing Director: scott@nextchapterinnovation.com

Suzanne Schmitt, Managing Director: suzanne@nextchapterinnovation.com