Managing Multigenerational Client Relationships in Wealth Management
When a client's children inherit, will they stay with your practice? The answer depends on the relationship you built.
The great wealth transfer is underway. An estimated $84 trillion will pass from Baby Boomers to younger generations over the next two decades. For financial advisors, this transfer represents both the greatest retention risk and the greatest growth opportunity of their careers.
The Retention Risk
Studies consistently show that 70% of heirs fire their parents' financial advisor. The primary reason: they have no relationship with the advisor. They were never included in conversations, never met the advisor personally, and feel no loyalty to someone they perceive as their parents' advisor, not theirs.
Building Relationships Early
The time to build relationships with clients' children is not when the assets transfer. It is years before. Practical steps:
- Include adult children in annual reviews — When appropriate and with the client's permission, invite children to observe or participate in financial planning conversations.
- Offer financial education — Workshops or one-on-one sessions on budgeting, investing basics, and financial planning for the next generation. This positions you as a resource, not just their parents' advisor.
- Track family information — Children's names, ages, careers, milestones. When you meet the next generation, demonstrate that you know who they are.
CRM Implications
Managing multigenerational relationships requires a CRM that can link family members, track household information, and maintain relationship histories across generations. The notes you take about a client's daughter at age 25 become invaluable when she inherits at age 45 and you already have 20 years of relationship context.
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