'Start engaging next generation of clients as early as possible' - rewatch integenerational wealth webinar

Speaking at the first of a series of Working Lunches hosted by Professional Adviser on Tuesday (18 August), Hepburn encouraged advisers to consider whether not making less profit in the short-term would be better for their business in the longer term once their clients' children have more wealth.

She said to consider how losing the next generation of families might impact the business.

"Have an audit for your business," Hepburn recommended. "If 65% of those inheriting wealth will move away, what might that look like in practice? What might it mean for you to lose those families once the wealth is transferred?"

Hepburn also said it was naïve to think of millennials as a single cohort when the top end of the age group (those 31-36) are interested in saving for a family and for their pension. Advisers should therefore "bust the myth that millennials aren't interested in savings and investments".

'Start as early as possible'

Also speaking on the webinar was Unique Financial Planning MD Philip Martin, who said his firm encourages its advisers to review their own client book to understand where problems could rise once the next generation receives their family's wealth. "We're working hard to give them [advisers] the skills and materials to properly engage with that next generation before it's too late."

Martin suggested communicating with the children of clients as early as possible, and Hepburn agreed.

"Start to talk to the children of existing clients at the point they go away to uni," Martin urged, while telling advisers to talk about money in a simple way. "Get a regular savings culture among children."

He aldo said one way to build a relationship with client's children is through mortgages - pretty much every child is going to have to think about getting onto the property ladder: "We can start to build a relationship with them around something that is genuinely meaningful to them."

The next working lunch, in conjunction with SimplyBiz, is on Thursday 20 August at 1pm and will focus on how to have a better understanding regulation and technology to build a sustainable advice firm. For more information, please click here.

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• Unique Financial Planning MD Philip Martin
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