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Although there is no exact definition, a millennial is defined as someone who reaches adulthood in the early years of the 21st century. Often times, the word millennial alone is enough to create a great divide in the room.
Though polarizing, the role of millennials cannot be understated. Speaking as a millennial myself, we have grown up in a truly one-of-a-kind period in our history. Huge advancements in technology in a rapidly changing environment gives us a generation with profound opportunity to thrive in the marketplace. Met with this opportunity is an equally profound financial burden. The cost of owning a home has never been higher, student debt is at an all-time high, and there are many with a growing fear that assistance programs like pensions, Social Security and Medicaid could soon be a thing of the past.
What am I getting to with all of this information? For young people, understanding investing has never been more important. Budgeting, saving, and planning for long term financial goals is something that is no longer optional for young people. Although there have never been more tools available to the average investor, there has also never been more confusion. While often seeking higher education, many millennials still lack a solid foundation of the core concepts of financial planning. Even with so many tools readily available to help you invest your money, there are a lot of questions that stand to be answered. What do I invest in? How much? How often?
If you are a millennial reading this, you are likely to be thinking to yourself “Why would I pay someone to manage my money when there are so many tools to do it myself?” – and this is a fair point. While the various methods for doing so leave you with options, choosing to see investing as something that can be put off is no longer optional.
This is where the role of Financial Professionals remains enormously valuable. A recent poll shows that even among so much technology, the vast majority of millennials still prefer a human adviser and the return on investment that they can provide. Millennials provide advisers a great long-term client base, while advisers can provide millennials with diverse and strategic investment portfolios, while taking the worry out of managing your investments alone. The relationship between advisers and millennial investors could prove to be extremely symbiotic.
The question that remains to be answered for the adviser is: What are you doing to attract and keep millennial clients? What operational practices have you implemented to help you market yourself to prospective investors? How are you marketing yourself?
Time is often the biggest hindrance to an advisers ability to market themselves to prospective clients. We here at Oranj and TradeWarrior are helping advisers combat this problem by providing powerful and efficient technology that can help to minimize the time spent on the monotonous day-to-day tasks. Less time spent on tasks allows for more time to be spent meeting with clients, and marketing to the new ones. Through our Oranj client portal, we also provide advisers with technology tools to communicate with millennial clients with secure online messaging, document vault, reporting and financial goal planning.
The next generation of investors holds tremendous potential for advisers, and investing in technology can allow advisers to maximize their business. What are you doing today that can help you stay competitive in the future?
Kyle LaJeunesse is a member of TradeWarrior’s Client Service Team.