% of AUM with a Next Generation Relationship

Currently, most Firms only have next gen relationships with 25-30% of their Clients. The assets from your older Clients will eventually transition and if you’re not working to build a relationship with their beneficiaries, you will lose those assets. For example, I’m 42. My parents have a Financial Advisor; I have absolutely no idea who he or she is (I am only aware that the assets are custodied at Fidelity). When my parents pass and leave their estate in my hands, I fully intend to take those assets to my own Advisor. Shame on you if your Clients’ kids think the same. You should ideally know (or have at least been introduced to) 60-70% of your Clients’ next gen.

Start building next gen relationships today. Hold (at least) annual family-style Client events. Ask to be introduced to the kids or whoever stands to inherit those assets. If you’re near age 60 or older, consider utilizing (or hiring) young talent to better build these relationships (how cool would it be if your successor were in charge of building the relationships with your Clients’ successors?).