RIAIQ

T im e to In v e s t in M ille n n ia l
The next generation is poised to make up about 4 4 % of the American
workforce. Advisers should prepare.
BY MADDY PERKINS

AS THE INDUSTRY UNDERGOES A MULTITRILLION
dollar wealth transfer, it's time for planners to shift their
focus toward the next generation.
Change will be here sooner than you might think, says
TD Ameritrade Director of Financial Planning Nathan Har
ness at a panel on millennials at IMCA's recent annual con
ference. This generation, bom between the early 1980s and
early 2000s, is poised to make up approximately 44% of the
American workplace, Harness says.
"If you think millennials aren't the econom y... this is our
economy," affirms Harness, who is also an associate profes
sor at Texas A&M University's financial planning program.
Generally, millennials are less tmsting than previous gen
erations. Only 19% believe that most people are trustworthy,

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Investing involves risk including the possible loss of principal. International and emerging markets may involve additional risks including
higher volatility and market illiquidity. Foreside Funds Distributors LLC.
according to Pew Research Center data cited
by Harness. "However, millennials do trust
their parents and friends when it comes to
financial advice," Harness notes. While 41%
of millennials trust their parents, only 14%
trust advisers, according to UBS Investor
Watch data.
How can advisers reel in these clients?
Harness suggests they take inventory of cur
rent client bases to see if they can broaden
their reach. "Who are your clients?" he asked
the audience. "Mom and Dad."
Attract clients' children "by attaching
your brand to something that excites them,"
he says. Revamp websites and social media
presences so that younger clients, who are
native technology users, have a better plat
form to engage with the planning process.
This can have far-reaching benefits. Over
Maddy Perkins is an assistant managing editor of SourceMedias Investment Adviser Group. Follow her on Twitter at (a)maddykperkins.
80% of clients are willing to use technology- Revamp
based media with their advisers, according
to PriceMetrix data. Only 45% of advisers are
social media
willing. Allowing millennial clients to partici presences
pate in the management of their finances is so younger
key. "The industry is shifting in focus from
access to advice. The value-add will be in the
clients
advice, not the access," Harness says. have better
Just 9% of millennials entering the work platforms to
force aspire to work in financial services,
Harness says, signaling a disconnect with
engage with
how the industry appeals to the next genera the planning
tion of planners. It's important for advisers to process.
get the word out on what the planning pro
fession can offer young people, he says.
Bringing in new blood is crucial for advis
ers trying to pull together a succession plan.
"There is tangible value to adding a young
adviser to your team," Harness says.
Put the real power of Asia
in your portfolio.
With Asia representing one-third of global GDP and more than
half of the w orlds annual growth, we believe that investors
should consider making a dedicated allocation to the worlds
fastest growing region.
For over 25 years, we have pursued an active, fundamental
approach to investing in Asia, resulting in portfolios with an
average active share of 85% and holdings that we believe
represent a better exposure to the future growth of the region.
Find out more about our experience, insight and passion
for Asia-and the role Asia can play in your portfolio-at
matthewsasia.com/missing
Matthews Asia
25 Years o f In v e s tin g in Asia
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