Working with Millennial clients has become a hot topic within our industry in recent years and months. How to market/not market, how to invest/save, communication preferences, goals and the big question — “Why even bother?”
Whether you like it or not, your client's children (and their children) have a growing need for financial advice. If it you're not going to answer their questions, they'll find someone who will. This is particularly true for female Millennials, who are poised to both earn more and take on a greater role in household financial decisions than previous generations.
As a Millennial who provides financial planning services to Millennials, I frequently have advisers asking how my service model works — how I can even earn an income if my clients “have no money” — and ultimately how to actually find and engage these clients.
There are a variety of tips and resources I'm always happy to point to, but overall, when working with female Millennials, avoid these mistakes to ensure you're not alienating them:
Overcomplicating the issues: Female Millennial clients are coming to you to begin their financial education. Never assume they know what you're talking about or even the difference between a traditional and a Roth IRA or a stock and a bond. Start with the basics, always ask questions about their baseline education before jumping into an explanation, and know that if they're walking away from your meetings confused and uncertain, they're going to find someone who better understands them. Whether it's sending links to past blog posts and articles you've written, drawing pictures, or simply breaking down big tasks into little ones — make it easy for this group of clients to get on board and understand where you are guiding them to go. And please refrain from the fancy investment lingo and 50-page financial reports. It may make you feel smart, but it won't help your client relationships.
Not being accessible: Of course, efficiency is key when running a practice and no one expects you to be available 24/7. But when it comes to working with the female Millennial cohort, flexibility and accessibility are key. Evening and weekend meetings, Skype calls and Google Hangouts, and online booking systems make it easy for this group to get on your calendar without having to leave their office or home. Breaking down barriers is big with this group and taking what was traditionally a formal event and making it informal puts the focus on the issues at hand — helping to educate and coach your clients to use their money to create a life they love.
Note: Accessibility also means having an online presence. Ensure you have educational and relevant blogs posts that your clients can read and get active on Twitter or Facebook to allow them an inside peak at your personality and business.
Putting all the focus on the long term: Retirement is an issue that we will all come face-to-face with eventually. However, for those in their 20s and 30s, you're looking at a 30- to 40-year timespan until that happens. Although it should be on the radar for female Millennials, they have much bigger and pressing financial needs that they are facing during this life stage. These clients need more immediate help figuring out how to merge finances if they get married, what to consider when having children, how to purchase that first house, what their employee benefits enrollment package means, how to ask for their next raise and more. This is a time of huge transitions for female Millennial clients and not to acknowledge that is not to address the biggest issues your clients are facing.
Ignoring the cash flow: Investments, insurance and tax planning are all issues female Millennials need help with as well, but the most pressing need and one that I've seen time and time again is help creating and analyzing a spending plan that helps them prioritize their goals. Too often I see clients take vacations, fly to weddings and pull other similar travel expenses from cash flow as it's needed instead of simply planning in advance and setting up a “travel account” with monthly contributions to prevent throwing a wrench in their budget. Helping to create a detailed cash flow system for spending and goals
and holding them accountable to implementing it is an imperative first step in helping these clients tackle their finances.
Mary Beth Storjohann is the founder of Workable Wealth, an online financial planning firm. You can find her on Twitter @marybstorj.
