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Young Americans are poised to inherit and grow enormous wealth.
But when it comes to meeting them wherever they are, financial advisors aren’t on the same page, especially with various digital feeds that tend to get financial advice via video.
Many advisors may not feel comfortable participating in these platforms or may not benefit from compliance. But that doesn’t mean they should ignore them completely.
Instead, they can take lessons from the youth-driven digital advice landscape and hone their marketing strategies to embrace this emerging customer base.
Here’s what advisors need to know about how young people are growing wealthy, where to seek financial advice, and how they can connect with them.
If you’re looking to grow your financial advisory business, check out SmartAsset’s SmartAdvisor platform.
Soaring Wealth Among Young People
According to Celulli Associates, millennials and Gen Z financial accounts will grow significantly in 2021. Their wealth increased from $2.9 trillion to $3.6 trillion, making him the most of any generational cohort.
For these young people, wealth comes from sources such as investing in retirement accounts and experimenting with brokerage accounts. They also stand to inherit considerable wealth from older generations.
In fact, 63% of all asset transfers by 2045 will come from baby boomer households. Much of that money will go to their children and grandchildren, the Millennials and Generation Z.
sources of financial advice
But with all that money now flowing, or ready to flow, into young people’s accounts, it’s not like these new investors are flocking to financial advisors and traditional advice sources for guidance. .
Instead, 34% of Gen Z consumers get financial advice from TikTok and 33% from YouTube, but according to marketing firm Vericast, this age group is seeking advice from a financial advisor at Only 24%.
When it comes to millennials, 13% get advice on TikTok. Another 22% visit YouTube and 26% seek professional advice.
Advisor Social Media Strategy
In general, financial advisors are not flocking to platforms favored by young people.
In a recent SmartAsset survey on marketing trends, advisors named Instagram and TikTok as the least-used social media platforms. About 82% and 97% of financial advisors say they never use Instagram and TikTok respectively.
More than 7 in 10 financial advisors say they never use YouTube or Twitter. Instead, advisors prefer her LinkedIn and Facebook. These platforms are often associated with older, more established users.
So what do you get? Advisors may not be able to participate on all platforms due to technology, content, or compliance concerns. But that doesn’t mean you can’t take lessons from the move to digital video financial advice and improve your marketing strategy based on those trends.
SmartAsset spoke with Kerri Feazell, Video Strategist, Authentic Advisor Video, and Samantha Russell, Chief Evangelist, FMG Suite, to determine what advisors need to know.
Should advisors use TikTok?
Short answer: it depends.
According to experts, advisors don’t need to be on TikTok if their base isn’t spending time on it.
But even without joining the platform, advisors need to understand up-and-coming Gen Z sites such as TikTok. “I don’t think it’s necessary for advisors to actively use TikTok to be successful, but in fact most compliance departments still don’t allow it, so most advisors can’t use TikTok. Why is this? It’s worth understanding why it’s so popular and growing so fast,” says Russell.
One important reason: Video has an impact that other media do not. “Having someone see your face and hear your voice on video helps build a connection and trust that you can’t get with written communication,” says Russell.
3 ways advisors can improve their social media and video marketing
1. “Lights, Cameras and Practical Advice”
Even if becoming a TikTok influencer isn’t your goal, Feazall says it’s time to hone your filmmaking skills.
“The goal is to use a video strategy to establish trust with potential clients, educate existing clients to retain them, gain referrals, and attract new advisor talent to grow the company. If so, those are good business reasons to invest in a video strategy,” she says.
Advisors can choose to embed videos in emails or newsletters. You can also upload to YouTube. (Another advantage of YouTube is that it can help you rank higher in search results.)
2. Find your niche. “Reaching the ‘young audience’ on any platform is not specific enough,” says Feazall. “If you want your videos to be seen by people between the ages of 25 and 35, it targets a very specific niche, which is the power of using a platform that collects a lot of data about its users. It is much less effective than making
She recommends being as specific as possible about your customers and targeting that group with your video ad content.
3. Check compliance. you know the drill “Always check compliance guidelines before making a video and throughout the process,” he says Feazall.
Disclosures and other requirements may be added to the video after it’s been shot. But you don’t want to find out in post-production that you’ve inadvertently shot something that’s forbidden.
“Most advisors are not yet authorized to use TikTok,” says Russell. But if you’re a registered investment advisor (RIA) who self-manages compliance, she adds:
Tips for growing your financial advisory business
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Let us be your organic growth partner. If you’re looking to grow your financial advisory business, check out SmartAsset’s SmartAdvisor platform.Matching qualified clients with certified financial advisors nationwide
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Widen the radius. According to a recent study by SmartAsset, many advisors expect to continue meeting with clients remotely after COVID-19. Consider broadening your search and working with investors who are accustomed to holding virtual meetings and spacing out in-person meetings.
Photo credit: ©iStock.com/wagnerokasaki, ©iStock.com/izusek
Post-millennials, Generation Z are accumulating wealth, but advisors aren’t meeting them where they are SmartAsset first appeared on the blog.
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