Most financial advisors prefer to navigate an older crowd of prospects for the obvious reason of higher earning potential, but trying to reach younger client base can be beneficial for the financial advisor’s practice.
As CNBC puts it there are several reasons for consideration, among them a pragmatic reason of a potentially broad application of the advisor’s knowledge (a young prospect will likely need counseling on quite a few financial topics) and the future profit.
In fact starting to build a relationship with a client early will lay a solid foundation for the future client loyalty.
Investment News agrees that younger clients, although not having too much in assets, will definitely have a litany of financial planning needs – buying a first house, getting married, taking care of children, dealing with employment benefits. They will typically need cash-flow planning more than anything else.
It’s important to explain to the younger prospect that financial advisors are not only helpful for the retirement planning.
According to US & News Report, there are at least seven situations when everybody could use a financial planner. Those situations include getting a first job, getting married or divorced, having to take care of aging parents and considering retirement. So basically every important step in life that involves a major financial transaction would benefit from an educated unemotional opinion of a financial professional.
The article also explains that it is important to have a consultation with a financial planner way in advance of your projected retirement date, and the earlier the better. About 20 to 30 years will give you plenty of time to make adjustments and save up.
As Money Under 30 explains working with a good financial advisor can be a solid investment in the future which will pay for itself if the financial professional provides solid investment advice.
US&NR also says that it is important to have a consultation with a financial planner way in advance of a projected retirement date, and the earlier the better. About 20 to 30 years will provide plenty of time to make adjustments and save up.
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