Private wealth management has always been a competitive space where advisors have to play the game according to the latest industry standards or risk being left out completely. This is especially true now that industry leaders project a massive generational wealth transfer near the sum of trillions of dollars to millennial investors in the next two decades. This new generation of ultra-high-net-worth individuals will undoubtedly have very different expectations as compared to their parents. This often creates conflict between clients and their wealth advisors as confirmed by recent survey reports. Expert family office advisory is vital to ensure a smooth generational transition, and so resolving any conflicts should be a top priority.
There tend to be three main reasons for this clash:
Lack of Interpersonal Engagement
One of the glaring revelations from the 2015 Investment News report was that over 18% of the surveyed advisors never met with their clients’ children and over 50% only met them once per year. This lack of engagement creates a gap in digital capabilities and empathy around the needs and expectations of the next generation of investors leading to a failure to build trust and relevance.