Things that young investors need to look for in a financial advisor

Category: Business 100

There’s a persistent misconception that young investors have no desire to deal with financial advisors, but it turns out that savvy millennials are more than willing to seek advice from qualified IFAs who are able to guide them through the best ways to manage their finances.

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Writing for Forbes, Alex Chalekian suggests that millennials not only want “financial advice, but many want a real person to deliver it, not a digital alternative,”. He goes on to state that the main hurdle is that they’re simply not sure what they should be looking for in an advisor.

Some young investors have traditionally been put off by the impression that IFAs are old and stuffy and don’t know what is best for their finances. Whilst this is certainly not the case with most advisors, it doesn’t take many bad apples to make an investor feel uneasy. Young investors may not bring a massive portfolio at the beginning, but their wealth will grow in time.

Let’s take a look at what is important to young investors when they are searching for guidance.

Meet, greet and be transparent

Young investors want to meet their IFA at the beginning of their relationship, not an intermediary who will screen them. Similarly, they aren’t looking to be charged for an initial consultation, which goes over the due diligence. Be up front about your compensation, however, and ensure that the prospective client is absolutely sure what your charges are going to be at the first meeting.

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Be tech-savvy

It is certainly a sign of the times, but young investors are generally going to be scouting around social media to find an IFA to help them manage their finances. What would they see if they

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looked at your profiles?

The younger generation have had computer technology at their fingertips for their entire adult life, and they want an advisor who has a similar approach. Are you using software for IFAs to take care of mundane tasks so you can spend more time with clients? Looking at suites such as Intelliflo financial adviser software can help you manage your time and clients more easily.

Younger investors may be harder to find at the moment, but being able to tap into this sector can help as it grows in the future.


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