Looking For A Way To Build Your Business? Younger Generations Have More Money Than You Think And They Need Your Help. Now.

Thursday, August 16, 2012 06:41
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Looking For A Way To Build Your Business? Younger Generations Have More Money Than You Think And They Need Your Help. Now.

Tags: business strategy | client communications | investing | markets

Everybody knows the Boomer generation has been the largest and most influential generation born to date. The Gen-X generation has never even come close. But the upcoming generation, the Echoes (or Millennials, if you prefer) rival the Boomers, numbering the same as the Boomers and with an equal amount of buying power.

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They’re also coming into their own as investors. In 2015, the first Echoes will turn 35. Add in the Gen-Xers and you have about 131 million people between the ages of 21 and 47 who are looking for advice.
 
And not only have they made money themselves, they’re positioned to inherit all that Boomer money over the next couple of decades. So why don’t you have more of them in your book?
 
One answer might be that this new generation requires an entirely different approach than you might take with Boomers. Primarily because a) the odds are that you are a Boomer yourself and b) Boomers required an entirely different approach than their Silent and GI parents and grandparents.
 
Echoes, especially, are fearful of the markets. They’ve grown up in the aftermath of one of the worst financial crises in history. Many have either had difficulty finding jobs or have seen parents lost jobs. The Boomer generation experienced a sweet ride on one of the longest bull markets in history.
 
Gen-Xers and Echoes have grown up in the land of boom and bust. For them, market downturns are the norm and rallies are aberrations.
 
The most recent MFS Investment Sentiment Survey shows that only 26% of Boomers say they will never feel comfortable investing in the stock market compared to 29% of Gen-Xers and a whopping 37% of Echoes.
 
The fact is, this new generation needs your help. But you’re going to have to get to know them first. With the money they have available and the shifts going on in the advisory industry, it might just be worthwhile to spend a little time doing just that.

 

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