Tips for working with millennial clients

It wasn’t long ago that some financial advisors were quick to dismiss the millennial generation — those born between 1980 and 1995 — as kids who have no money and ask too many questions.

But David MacDonald, group vice-president, financial services, at Environics Research, says that’s an outdated characterization.

“In 2024, they’ve got money, and they still ask a lot of questions,” he said. “And if you aren’t prepared to answer those questions, you may have to rethink what the future of your practice is going to look like.”

Not only are millennials in their prime income earning years, MacDonald said, but they’re the generation with the highest proportion of people earning $100,000 or more.

And they’re about to come into more money. A generational transfer of real estate, investments and trillions of dollars in cash is coming for the millennials in the next decade or so.

“As the millennials start to inherit that wealth, they’re going to become quite valuable to advisors,” MacDonald said. “And I would recommend advisors get in front of that as quickly as they can.”

Joseph Curry, owner and financial planner at Matthews + Associates in Peterborough, Ont., said winning millennial clients can be tricky because many are leery of the financial advice industry.

A millennial himself, Curry hears them say they don’t like being talked down to, they resent being dictated to, and they hate being sold expensive products when they’re only in the market for advice.

“Those are typically the horror stories I hear,” he said. “They just don’t want that ‘Listen to me because I know what’s best’ attitude.”

“Often what I hear is that the advisor talked the whole time, and did not listen,” said another millennial, Jessica Moorhouse, CEO of Toronto-based financial education company MoorMoney Media Inc. “We don’t believe in ‘Just trust me.'”

She said many millennials are open to working with an advisor, as long as it is on their terms.

“Do older advisors have a reasonable chance of winning millennial business? Absolutely, because they have that one thing we want. They’ve got the experience. They’ve got all of that education. They’ve got a lot of great qualities,” she said. “They just need to adapt.”

This is a generation, MacDonald says, that has embraced robo-advisors and fintech. But they’re ready to return to the world of face-to-face consultation — even if it is by Zoom.

“We find that as their assets grow north of $100,000, broaching $250,000, that’s when they start to realize they really do need proper advice,” MacDonald said. “And this is where human advisors really come into play.”

Curry believes millennials are open to more traditional professional relationships as long as you meet them halfway.

“Get out to where millennials are,” he said. “Whether that’s LinkedIn or X or Facebook. Start asking them questions. You can’t really do planning without understanding what someone’s goals are and what they’re trying to achieve.”

Moorhouse said the trick is being authentic.

“Where you meet them really depends on you; what seems authentic to you. You don’t have to be on every platform,” she said. “If it doesn’t really fit your personality, don’t do it. It’s going to come off as weird or cringey. You don’t want to do that.”

MacDonald said millennials tend to be enthusiastic about technology and are less concerned than boomers about privacy.

“They don’t mind sharing data in exchange for the benefits that come,” he said.

“When it comes to working with millennial clients, one on one, it’s really about personalization,” Moorhouse said. “That’s one thing that can differentiate you, and help you hold on to clients.”

“They want a plan that is created for them and that has had human oversight,” MacDonald said. “They want the advisor to know them as a person, individually, and not just as a number.”

And their goal is not just wealth accumulation, he added: “They value experience over stuff. Travel experiences, recreation experiences, hobbies, even volunteering can count as an experience.”

“As millennials, we see our hoarder parents with garages full of crap, and we don’t want that,” Moorhouse said. “Possessions can’t necessarily fill whatever void you feel. But you can gain a lot of happiness through experience. It lasts a long, long time, and it creates memories.”

As for other goals, she suggested that owning a home may not be on the list.

“They may be happy renting,” she said, “and investing to fund experiences.”

The inability to adequately connect with financial planners has driven many millennials into the arms of discount brokerages. Their coming inheritance may give the financial planning industry a second chance to build a relationship with them.

“If you’ve got boomer clients, invite them to bring their adult children into those meetings,” MacDonald said. “Talk about legacy, talk about the wishes of the parents and what the millennials’ goals are. That would be a great first step.”