How Financial Advisors Can Grow During the Great Wealth Transfer (Sponsored Content)

Because you're a subscriber to this Bloomberg podcast, we thought you'd be interested in a sponsored podcast called The Great Client Transfer, produced by Prudential and Bloomberg Media Studios. Here's a recent episode.

Welcome to the great client transfer. If you're a financial adviser, I'm sure you've heard about and thought about the great wealth transfer. This is an inflection point where there's a huge opportunity to try to solidify a new generation of clients. However, when when the money moves, there's a very good chance your clients will move too. Demonstrating true understanding of how this new generation thinks about wealth and retirement will be essential. Today, we'll discuss the data behind the wealth transfer and how financial advisors can make the most of this moment. I'm Maggie Lake, a financi

Thank you for having us.

Yeah. Great to be here. This is a really important topic, so I think we're we're gonna have some fun and hopefully, give some people some stuff to learn about. David, Prudential has done a lot of research on this great wealth transfer. What's the research telling you?

I mean, it's it's a really big number. Right? According to a Cerulli report, over a $100,000,000,000,000 that's estimated to be transferred to generations in the next twenty five years. So, I mean, we're talking about just this tremendous, you know, opportunity and this risk because if you look at people when they're asked, like, are you gonna stick with your parents' adviser? Only about 19 ish percent say they're gonna stay with their adviser going forward. So I think that what this creates is just this question like, how are you preparing as an adviser to meet this new possible demand?

That's a shockingly low number, I think. I I was not expecting to hear that. Britney, you focus on the behavioral part of finance. Why? Why is that number so low? Why do people feel like they have to make a change? Well, I

think for so long, they feel unheard or unseen by the financial adviser, especially in this scenario where it's the next generation. They probably are looking at that adviser as like, no offense, but old dinosaur. Like, they're not talking to me in a way that makes sense. They're not, like, relating to me where where I'm at with my goals, with my different lifestyle. I mean, planning is a lot different for millennials and younger than it is for the baby boomer generation. So if they're feeling unheard, unseen, uncomfortable asking questions of the person that they're supposed to hire as their

And that I find it surprising because there is it's a big important thing. It can be stressful. So you would think continuity would be the easy path, the path of least resistance, but they're blowing it up and saying, I want something different. I wanna find a change. Are you seeing that?

Absolutely. I'm seeing it with a lot of the clients that are even coming to us right now. So I worked with a family who's going through the similar situation. And as they were planning for their wealth transfer to their children, the children met that advisor. And when they walked out of that meeting, they're like, this is not our guy. This is not our person. It felt like a dinosaur to Britney's point, and they wanted somebody that could actually understand where they were coming from based on where they were in their life as millennials. So I think that's the element where they decided to loo