I have seen headlines about “The Great Wealth Transfer” for a while, and as time goes on, the topic gains increased relevancy. There is a growing need to build relationships with the next generation not only to retain assets, but to help conduct the plan on ongoing financial security for the family. To start with a personal note, early this year, I lost my father-in-law. Although he did not have a whole lot, the process my wife and her siblings are going through to liquidate assets, sell property, and manage finances is a steep hill to climb. Add on the emotional toll losing a loved one; these wealth transfers can be a messy and emotional process.
My personal story is not the point, but it is an in-the-face example that made The Great Wealth Transfer real to me. We all have a limited time on this earth, physicists confirm that time only moves in one direction, and baby boomers are getting up there in age. An article by Think Advisor stated that 81 percent of inheritors have plans to switch firms within one or two years of inheritance.[1] Eighty-one percent does not necessarily reflect asset weight (i.e., the 19 percent that are planning on staying may make up a sizable portion of the overall generational assets), but it does prove a generational divide with respect to investor / advisor preferences.
Younger investors tend to want a collaborative process, timely and consistent communication, tech forward platforms, and advisors to demonstrate their value.[2] State Street’s 2024 study showed that millennials that work with an advisor have an average household income of over 200 thousand dollars.[3] Combining that with the high likelihood of many inheriting assets within the next decade or two, the opportunity of working with millennials is huge. With the constant evolution of technology and AI, it is a challenge to keep up with everything available. Innovations also create a large opportunity for those open minded that are willing to try new things. Connecting with younger generations is necessary not only for you as an advisor, but collectively as an industry if we want to continue to provide value for generations to come.
Like with most things, the threat is stagnation. As a firm, continuing to do things as they always have been done will lead to a high percentage of clients’ heirs walking away. Answering a survey is different from changing your firm, so I imagine it would not be the eight one percent as stated above, but if it is in the ballpark, there will be a lot of missed opportunity. Sure, estate planning is a significant piece of the puzzle to ensure the family’s goals are intact and durable across time, but keeping up to date on the younger generation’s goals and wants is an important part of keeping your business strong. As AI and Large Language Models start to get a foothold in the business world, it is important to stay up to date on trends and how you can leverage new tools for client communication, onboarding, and research.
Now we are seeing CRMs start to develop systems to help analyze the potential for asset attrition. Additionally, scaling relationships are extremely difficult. Financial services focused CRM systems coupled with compliance approved content providers can help scale communication and help bridge the potential gap between you and the next-generation client. With Redtail Speak and MyRepChat you can compliantly text clients, which are often their preferred form of communication. While these tools represent the cutting edge today, the pace of change is accelerating. The advisors who thrive through the Great Wealth Transfer will be those who commit to a continuous process of discovery and adaptation – by attending industry events, evaluating new vendors, and being honest about their firm’s capabilities – transforming technological change from a threat into their greatest competitive advantage.
Key Takeaways
Goal: Maintain assets through the “The Great Wealth Transfer,” and help the next generation grow wealth, reach financial goals and prepare for the next stages of their lives.
Problem: Eighty-one percent of younger investors said they plan to move away from their parent’s firm / advisor. Assets may not be as sticky as they have been.
Insight: Asset attrition is a dual threat: stagnation in your service model guarantees you will fail the scaling challenge of connecting with the next generation. Success requires actively meeting these new investors on their own terms.
Solution: Actively investigate and implement modern advisor technology. Start by demoing CRMs with attrition-focused analytics and adopting compliant communication methods like texting to meet the next generation where they are.
[1] https://www.thinkadvisor.com/2025/06/12/81-of-wealth-inheritors-say-theyll-fire-their-parents-advisor/
[2] https://www.ssga.com/us/en/intermediary/resources/practice-management/how-advisors-can-succeed-with-millennial-investors
[3] https://www.ssga.com/us/en/intermediary/resources/practice-management/the-2024-influential-investor-segment-study
