The financial services industry stands at the precipice of the largest wealth transfer in human history. Over the next two decades, Cerulli projects that wealth transferred will total $124 trillion—$105 trillion of which is expected to be inherited by heirs.¹

This isn’t just another market cycle or business trend—it represents a fundamental reshaping of the wealth management landscape. The primary beneficiaries of this massive transfer will be members of Generation X, Millennials, and Generation Z.

For financial planners, the relationships that will capture this tsunami of assets are being built today. Firms that proactively address how they’re engaging with next-generation investors will position themselves to thrive.

Why Heirs Tend to Fire Their Parents’ Financial Advisors

Research shows that over 80 percent of heirs fire their parents’ financial advisors after receiving an inheritance.² This mass exodus represents one of the industry’s most significant challenges in the face of the coming wealth transfer. But why are these next-generation clients so quick to walk away?

The technology gap stands as perhaps the most glaring reason. For younger generations who manage nearly every aspect of their lives through smartphones, technological shortcomings aren’t minor inconveniences—they’re dealbreakers.

Beyond technology, there’s a fundamental disconnect in relationships. Financial professionals who spent decades building rapport with the wealth creators often had minimal interaction with the children or grandchildren who will inherit the assets. When the wealth transfer occurs, these heirs suddenly find themselves working with a stranger who knows little about their unique financial situations, goals, or values.

This relationship vacuum is compounded by service mismatches. Traditional models were designed for wealth preservation and retirement planning—priorities that aligned perfectly with Baby Boomers’ needs. In contrast, younger generations often prioritize different financial concerns, such as:

• Managing substantial student loan debt
• Navigating gig economy income fluctuations
• Balancing entrepreneurial aspirations with financial security
• Integrating values-based investing principles
• Utilizing digital financial tools and platforms

When heirs inherit wealth, they frequently discover that their parents’ advisors aren’t equipped to address these modern financial challenges.

Creating Mobile-first Experiences That Meet Modern Client Expectations

Today’s younger investors expect mobile access to financial services. The smartphone has become the primary gateway to financial information, planning tools, and investment management for Gen X, Millennials, and Gen Z clients.

Capturing next-generation clients means prioritizing seamless, intuitive mobile experiences that rival the best consumer apps, including:

• Responsive design that works flawlessly across devices
• App-based access to core financial services
• Integrated financial aggregation
• Real-time notifications and alerts
• Self-service capabilities
• Budgeting and cash flow management tools

The firms that excel at mobile experiences understand that they’re not just competing with other financial professionals; they’re competing with the best digital experiences their clients encounter across all industries.

Values-based Planning and Financial Wellness

Today’s younger investors aren’t just concerned with portfolio performance—they’re looking for meaning and alignment with their personal values. This fundamental shift represents both a challenge and an opportunity for financial professionals seeking to connect with the next generation of wealth.

Aligning Money with Meaning

Millennials and Gen Z clients want to understand the impact their money is having on the world. Environmental, social, and governance (ESG) investing has moved from niche to mainstream, with younger investors increasingly demanding options that reflect their concerns about climate change, social justice, and corporate responsibility.

Charitable Giving Strategies for the Modern Client

Philanthropy looks different for younger generations. While their parents might have focused on traditional charitable donations and legacy planning, today’s clients often seek more direct engagement with causes, transforming charitable planning from a tax strategy into a meaningful expression of personal values.

The Financial Wellness Connection

Perhaps most significantly, younger clients increasingly view financial health as just one component of overall well-being. Many firms are partnering with financial therapists, wellness coaches, or mindfulness practitioners to provide comprehensive support. This integrated approach recognizes that financial decisions are rarely made in isolation from other life considerations.

Building Trust Through Education, Transparency, and Personalization

Today’s younger investors aren’t just looking for someone to manage their money; they’re seeking a trusted guide through the complex financial landscape. This fundamental shift requires financial professionals to reimagine their role and approach.

Becoming a Financial Mentor

Position yourself as a mentor who empowers clients through knowledge rather than simply executing transactions on their behalf. Create educational content that addresses common questions and concerns, building credibility while filling the gap between formal education and real-world financial needs.

Transparency Builds Stronger Relationships

Younger clients want transparency when it comes to fees, services, and performance expectations. This transparency extends to your investment and planning philosophies as well.

The Power of Personalization

Mass-market approaches won’t retain the next generation of wealth. Use client data intelligently to personalize recommendations and outreach efforts. This might include tailoring communication frequency and medium based on client preferences, providing relevant content based on specific life circumstances, remembering personal details that matter to clients, and anticipating needs before they arise.

Most importantly, offer flexible plans that adapt as goals evolve. Today’s financial plans offer dynamic approaches that accommodate changing priorities, career shifts, and unexpected life events. Your ability to pivot alongside clients demonstrates that you’re truly listening and responding to their unique circumstances rather than forcing them into standardized service models.

Specialized Support for Modern Financial Challenges

Today’s younger generations face financial challenges that simply didn’t exist for older generations. Student loan debt has reached crisis levels, the gig economy has transformed traditional career paths, and skyrocketing housing costs and economic volatility have created new obstacles to financial stability.

Work to develop specialized expertise to address these modern challenges:

Student loan management has become a critical advisory service. Offer young clients comprehensive guidance on loan consolidation, income-driven repayment plans, refinancing options, and potential forgiveness programs.

Non-traditional career planning is equally essential. The freelance and gig economy requires different financial strategies than traditional employment. If you can navigate irregular income streams, self-employment tax considerations, retirement options for independent contractors, and business structure decisions, you’ll position yourself as an invaluable partner to your entrepreneurial clients.

Emergency fund building takes on renewed importance in an uncertain economy. Help clients establish appropriate cash reserves based on their specific income volatility, family situation, and career path rather than applying one-size-fits-all recommendations.

Early career guidance represents a strategic entry point for building long-term client relationships. Helping with salary negotiations, benefits package evaluations, and initial retirement account selections helps establish your value early, potentially securing clients for decades.

Meeting clients where they are financially means abandoning asset minimums in favor of flexible service models. Consider offering subscription-based planning services, modular financial advice packages, or graduated service tiers to accommodate younger clients with growth potential.

Workplace benefit selection guidance addresses a significant knowledge gap. Many young professionals leave substantial money on the table through poor benefit choices. By clarifying the differences between high-deductible health plans with HSAs versus traditional coverage, explaining disability insurance options, and optimizing retirement plan contributions, you’ll provide immediate tangible value.

Embracing the Generational Opportunity

Younger generations are rewriting the rules of client-advisor relationships. They seek authentic partnerships built on mutual respect and shared values, demanding a new approach to financial planning.

These generations face unique financial challenges and will benefit from working with a financial planner who understands their specific anxieties, goals, and priorities. To learn more about the generational differences that impact financial planning, read our blog, Unveiling Generational Differences in Collaborative Planning.

Sources:

1 The Cerulli Report—U.S. High-Net-Worth and Ultra-High-Net-Worth Markets 2024.

2 Wealthy Inheritors Plan to Fire Their Parents’ Wealth Advisors, CNBC, June 5, 2025.

DISCLAIMER: The eMoney Advisor Blog is meant as an educational and informative resource for financial professionals and individuals alike. It is not meant to be, and should not be taken as financial, legal, tax or other professional advice. Those seeking professional advice may do so by consulting with a professional advisor. eMoney Advisor will not be liable for any actions you may take based on the content of this blog.

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