Why Millennials Aren’t Getting Love from Financial Advisers

Discussion in 'The Cocktail Lounge' started by TipdOff, Nov 11, 2014.

  1. TipdOff

    TipdOff Well-Known Member

    Oct 2014
    Likes Received:
  2. JR Ewing

    JR Ewing Super Moderator Staff Member

    Feb 2014
    Likes Received:
    I couldn't get the article to load for some reason.

    One thing to keep in mind about financial advisors and younger people is that generally (not always) younger people don't have a whole lot of investable assets. They generally have accumulated much less and tend to have most or all of any investable assets tied up in retirement accounts that cannot be rolled over into a brokerage IRA unless / until they change jobs, or taken out of the work account until they're much older and close to retirement.

    Advisors are generally paid by the amount of money we manage. Someone with a million or ten million is a much more attractive prospect than someone with $10k or $100k. Many firms don't even pay their advisors for accounts under $250k.

    Of course there are exceptions - those who are born into money, inherit a substantial amount at an early age, or happen to be extraordinarily successful at an early age and accumulate lots of cash or end up selling their company or whatever.
    Last edited: Nov 11, 2014
  3. gmckee1985

    gmckee1985 Senior Investor

    Sep 2014
    Likes Received:
    Of course millenials aren't using financial advisors as much as previous generations. For one, they grew up in a time where there was a lot of economic turmoil. They are a bit behind the eight ball in terms of accumulating wealth. Previous generations came of age in the economically booming 80's and 90's, so they would have more of a need for financial advisers. As the economy improves and millenials get back on track economically, you will see that change, I think. It will take a bit of time though.

Share This Page