Journal of Financial Planning: May 2021
Phuong Luong, CFP®, considers herself an “elder millennial” and she serves younger clients. As such, she is uniquely positioned to examine the intricacies of the next generation of clients.
Luong recently wrote in the Morningstar article, “What the Next Generation of Clients Is Looking for from Advisors,” that many traditional financial advisers don’t understand the issues facing next-generation clients. She offered some inside perspective from her work with clients who are in their 20s and 30s.
According to Luong, the following three things are common themes in her next-generation clients. Planners should be familiar with these subjects to help this demographic.
Student loan guidance. Luong writes that many of her younger clients have student loan debt.
“This has implications for taxes, homeownership, retirement savings, and starting a family,” Luong writes.
Understanding loan forgiveness programs or debt-management strategies is important when serving this demographic.
Values investing. Luong writes that next-generation clients want to invest in line with their values, not support companies that contribute to environmental degradation or mass incarceration. They’re having a hard time doing that, Luong writes. Helping them figure this out will be valuable to them.
Wealth redistribution. In the November 2020 issue, the Journal interviewed Rachel J. Robasciotti, founder and CEO of Adasina Social Capital, who introduced us to the concept of clients who want to redistribute their wealth to their communities once they’ve reached their own definition of “enough.”
These clients, Luong writes, want to know, “How much can I redistribute now, while ensuring financial security for myself and my family?”
Redistribution goes to funding political movements, emergency housing, and medical needs for others, which is framed as “moving” or “returning” money to BIPOC communities.
