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How to attract next-gen clients

Lightning Round Sponsored by
It won’t be long before Gen Xers and millennials will seek financial advice in far greater numbers. In fact, they could make up about 40% of clients within the next five years, estimates Kate Healy, managing director of TD Ameritrade Institutional's Generation Next division.

The problem: Many RIAs are not prepared to meet those clients’ needs, she says.

For Financial Planning’s Lightning Round, Healy fielded rapid-fire questions about how advisors can not only reach this next generation of clients but also recruit younger and more diverse talent to the profession.

LIGHTNING ROUND: 1 minute with Kate Healy. Managing Director Generation Next TD Ameritrade

QUESTION: Biggest threat to RIA growth?

HEALY: RIAs are not paying attention to the next generation of clientele.

QUESTION: Clientele in 5 years?

HEALY: In five years, almost the majority of their clients are going to be Gen-X and millennial clients. They need to think of a different service offering.

QUESTION: How to attract next-gen clients?

HEALY: It’s not just about investments. It’s about giving them a holistic view of their financial picture. Giving them advice on career, retirement savings, debt management.

QUESTION: Fee changes needed?

HEALY: We need to think outside of the box of just charging AUM and investments and think about, how do we charge a fee for advice? How do we make it palatable to next-gen? Monthly retainers, monthly subscription models?

QUESTION: Where to find talent?

HEALY: Advisors need to get on campus and go to the financial planning programs, meet with the program directors to find your next-generation interns and associates.

QUESTION: How to attract women to the profession?

HEALY: We have to talk about what we do and showcase successful women advisors. You can’t be what you don’t see.

QUESTION: Why is diversity important?

HEALY: By 2045, we will be a majority-minority country. If we don’t have more minorities into this profession we will not be able to serve the clientele.

QUESTION: Favorite book?

HEALY: “Quiet” by Susan Cain.

QUESTION: Favorite app?

HEALY: Pandora because it is a lifesaver when I’m on the road. Huge music fan.

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