The opportunity to serve NextGen clients continues as pandemics, global warming, and other situations are changing families, work culture, and digitization. HNW and ultra HNW clients, which were previously the older matriarchs or patriarchs of their families, are now much younger and sometimes wealthier generation. And they demand more access and alternatives to how they invest and manage their wealth.

The NextGen HNW client

Financial advisors have long sought to do business with high and ultra-high-net-worth clients. These NextGen clients have large investment portfolios and often require complex financial planning solutions. Their planning may also include trusts, legacy planning, and other needs similar to their parents or grandparents but often more complex. NextGen clients will generate sizable fees for your firm in exchange for your advice and expertise.

Right now we are in the midst of the most significant inter-generational transfer of wealth in history. Data firm Cerulli Associates projects this wealth transfer at $68 trillion over the next 25 years. As the beneficiaries of the trusts and other legacy planning, you helped their parents and other relatives establish, you may continue the relationship—or not. This illustrates the importance of establishing and actively maintaining ties with the children and other family members of your older HNW clients.

In other cases, this next generation of HNW clients might seek you out after inheriting wealth from relatives or are newly wealthy business owners who have built up wealth through their business. 

NextGen requirements

When it comes to working with HNW and ultra-HNW clients on their often complex issues, cutting-edge technology will differentiate your capabilities to service the full range of accounts and requirements of managed accounts owned by NextGen clients with extraordinary wealth. They expect access and the most enhanced software when managing their wealth. Legacy systems can quickly become your enemy if access to alternative investments and immediate access to information isn’t readily available. Leveraging third-party APIs is now a critical requirement in moving assets to your firm:

“The flow rate is 100% higher for that client moving [assets] from brokerage into managed accounts [and] that was before we started the [pilot] program and that is sustained itself over the quarter.”

Envestnet CEO Bill Crager, RIABiz.

Contact us at AdvisorPeak to experience how our trading and rebalancing software enables you to offer alternatives to your HNW and ultra-HNW clients.