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A newly released white paper by Equitable provides financial advisors with insights to better serve millennials as they transition from early-career earnings to wealth building, including many who will inherit assets as part of the "great wealth transfer." Between $30 trillion and $140 trillion will shift from baby boomers to younger generations by 2045.
Equitable's research showed that 67% of millennials expect or are fairly confident that they will inherit assets from their families.
Most expect to receive a range of asset types, which for many will make their financial lives more complex:
- 71%, cash
- 51%, personal valuables such as jewelry
- 46%, real estate
- 41%, financial assets
- 41%, retirement plan assets
- 24%, a business
"This historic transfer of wealth is about more than passing down assets, it's about passing down values," Gerald Grant a financial advisor with Equitable Advisors, said in a statement. "Engaging the entire family in honest — and sometimes uncomfortable — conversations lays the foundation for truly lasting relationships."
Equitable's survey, fielded last summer, included 500 U.S. adults born between 1981 and 1996.
Future-proofing advisor practices
As millennials redefine expectations around advice, planning and engagement, Equitable's study shows how advisors serve the next generation of clients.
Equitable found that some 80% of millennials express confidence that they are making smart financial decisions, but that confidence plummets to 27% when their financial situation becomes more complex.
As they start to inherit real estate, investments, businesses and cash, the shift in assets presents advisors with an opportunity to offer expert guidance and holistic financial planning.
Although millennials are the first generation to widely use digital financial tools, their reliance on AI-driven and DIY investment platforms is shifting with the increased financial complexity they are dealing with. Many now want personalized financial guidance as they build and inherit wealth.
Seven in 10 millennials would prioritize working with an advisor over a solely digital experience, according to the study. Specifically, 27% said they prefer working only with an advisor, while 41% of millennials prefer a hybrid approach that balances technology and tailored advice.
The study showed that 68% of millennials have discussed future inheritance planning with their parents, and two-thirds of those families work with an advisor — underscoring that financial planning often begins at home, Equitable said.
That influence runs deep: 87% of millennials reported that their family's relationship with an advisor is a key factor in deciding whether to continue working with that advisor themselves. Up to a point: 40% said they would switch advisors if they do not feel seen or supported, or if the advisor lacks experience with clients in a similar situation.
The ongoing shift in wealth is more than a financial decision for most millennials, Equitable said; it's emotional and cultural. Ninety-three percent of millennials in the study said it is important for their advisor to align with their personal values and goals.
Moreover, nearly three-quarters of those already working with an advisor said they plan to seek one who specializes in inheritance and wealth transfer.
Financial planning is about building a personalized roadmap for the future, grounded in purpose and shaped by clients' values and family dynamics, Equitable president Nick Lane said in the statement.
"Financial advisors who understand this mindset will be best positioned to connect with millennial clients, futureproof their practices and support them through every life stage," he said.
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