Enough rookie advisors get into the seat only to find themselves frustrated with the job. This frustration is no doubt a significant factor for the widely cited estimate that
A recent
Age-similar peers (23-30) weighed in candidly. Many of them had found it difficult to start conversations with clients, let alone land any business. And some added that their places of employment weren't exactly helping them in meaningful ways, either.
Acknowledging the age gap ASAP
An advisor's age (or lack thereof) isn't necessarily an issue when everyone is willing to address it upfront. That instant acknowledgment can go a long way to
The team willing to do this work can shift the conversation, potentially in the firm's favor. Melissa Caro of New York City-based My Retirement Network said in an email, "age in years is one thing. Investment in the work is another."
If a client expresses concern about the age gap, it is "legitimate," said Caro. In this moment, the young advisor who can reassure the client will look to make them feel understood.
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She suggests saying, "Something as simple as 'I appreciate you saying that directly; it's a fair thing to want to know' or 'I completely understand where you're coming from. If I were in your position, I'd probably be evaluating whether the person sitting across from me has the knowledge and experience to help me make important financial decisions.'
"From there, the conversation shifts to craft," she said.
Teaming up to avoid brain drain
Rookies get hired for a reason, but they also choose their firms for a reason. Firms that embrace a collaborative approach and provide mentorship
Randy Bruns of the Naperville, Illinois-based Role Model Wealth said in an email that the firm is deliberately designed around young advisors. Bruns, who is 47, is also determined to hire and
Here, "clients don't work with a single advisor in isolation," he said. Instead, "they benefit from the collective knowledge of multiple professionals with varying levels of experience."
By blending seasoned and younger advisors, the team reaps collective benefits.
This collaboration helps younger advisors gain experience and client credibility. By partnering with senior team members, they are better equipped to reassure wary clients about their competence and preparedness.
Importantly, imparting wisdom involves plenty of listening on the advisors' behalfs.
"Many retirees and preretirees have decades of professional experience," said Bruns. "When younger advisors take the time to understand a client's concerns and priorities before offering recommendations, trust tends to develop much more naturally."
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Building credibility through expertise and trust
Mastery and specialization of specific topics or issues also helps young advisors establish their own versions of expertise and credibility. For the new advisor, Joon Um of Beverly Hills, California's, Secure Tax & Accounting, suggests developing relationships with a tax firm early in their career to gain an edge.
"Tax planning impacts almost every major financial decision," Um said in an email. "Advisors who understand the tax side tend to serve clients more holistically."
"Every now and then, we share a client with a younger advisor," Um said. "If I trust the advisor and believe they're doing a good job as a fiduciary, I tell the client exactly that."
David Demming of Aurora, Ohio-based Demming Financial Services has been in practice for nearly five decades. During that time, the firm has overseen several generational handoffs among its advisors.
Demming found these transitions were easier using dual financial planners.
"The younger planner transitions smoothly in most cases," he said in an email, noting that the firm has undergone its third transition. "Fifteen to 20 years ago, was [the] first with our now senior planners at 35-46 years of age [and] the second group at [ages] 27-32."
The firm also recently hired two new advisors. Their ages: 22 and 24, he said.
