Connect with the next generation of clients

Connect with the next generation of clients

A key strategy for financial advisors is intergenerational planning. You want to find opportunities to involve your clients’ children in a financial plan — and, ideally, to engage those children as future clients.

According to data on wealth transfer only 2 percent of children keep their inheritance with their parents’ financial advisor. Along with other approaches, social media can be a helpful tool for connecting with the next generation. Here is one idea that leverages LinkedIn:

  • When meeting with clients, conduct a formal beneficiary review, confirming that the information is up-to-date and accounts are properly designated.
  • Ask your clients about their beneficiaries. For example, if their children are older and living independently, ask about their children’s financial plans and goals, such as saving for college, home purchases, or retirement.
  • Tell these clients that you use LinkedIn to communicate and connect, and ask if you can introduce yourself to their beneficiaries via LinkedIn.
  • If the clients approve, send a customized LinkedIn invitation to connect, mentioning your professional relationship with their parents and offering to help with financial planning

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Here are some recent success stories from advisors:

  • One client’s son accepted the LinkedIn connection request and thanked the advisor. The son said his parents had shared good feedback about the advisor’s work.
  • A business owner — and daughter of a client — did not respond immediately to the LinkedIn request, but called the advisor three weeks later, asked if the advisor was accepting new clients, and eventually opened a $5 million account.
  • Another client’s son accepted the advisor’s LinkedIn connection request and asked the advisor to call him. The timing was ideal. The son had just changed jobs and hired the advisor to help with his $400,000 rollover.

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