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The Millennial Wealth Transfer: I Don't Think You Are Ready For This

Forbes Business Development Council
POST WRITTEN BY
Adam Bakhash

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It's coming, are you ready? Lucky for you, there is still time to prepare and help your families and clients get ready for the largest transfer of wealth in recorded history. Over the next 30 years, an estimated $30 trillion of wealth will exchange hands from the baby boomers to Generation Xers and millennials. Just to put that in perspective, that is $10 trillion more than the U.S. GDP in 2017. What's a millennial, you say? Well, you could be sitting next to one right now. Anyone born between 1981 and 1997 is considered a millennial, and there are over 75 million of us.

Over the next 12 months, I will share with you the greatest differentiating traits, requirements and goals us millennials hold near and dear to our hearts with regard to money and the future so you can develop and enrich your relationships. Here is a preview of what to expect:

1. I want it now: How growing up in the digital generation has shaped our thought patterns. Having the world at your fingertips wasn't just some catchy 1980s advertising slogan for the internet, it is what shaped our generation. We have grown up with the ability to learn and communicate more efficiently than any generation before us. Our expectation for convenience, transparency and enhanced communication is only superseded by the technology that helps us along the way and we expect you to act accordingly.

2. Peace and love: A guide to environmental, social and governmental investing. Millennials have done such an amazing job pushing the boundaries by asking such a simple question. Why? Nowadays there are many innovative ways for you to be part Gordon Gekko and part Gandhi at the same time. That is what socially responsible investing looks like. Having the ability to choose makes all the difference. By aligning your company's ideals and offerings, you will be prepared to help millennials with this great task ahead.

3. Fake news: I can fact check you faster than you finish your thought. Imagine the first major financial milestone of your generation being called the Great Recession -- you would be a skeptic too. We watched the economic world almost collapse before our eyes and looked to our leaders and parents for the answers but found them faster ourselves. The digital experience creates transparency and convenience that helps us engage our leaders, teachers and peers in innovative ways.

4. Domo arigato Mr. Roboto advisor. During the last 10-year bull market it has been hard for some money managers to compete with the overall benchmarks year over year. Welcome the Robo Advisor. Robo investing has been a great low cost and efficient tool for all types of investors who want a piece of the action. The use of algorithms gives investors the ability to confidently stay within their risk tolerance and take advantage of low-cost management without having much involvement of their investment choices. Knowing the options investors have out there and how you stack up will give you a great competitive advantage when speaking to a prospect or client.

5. Giving back and seeing the world: How experiences are as valuable as money. We are a generation of doers, explorers and life seekers. We want to be involved and show the world what we are/were a part of. The only problem is we need money to do it. Lucky for us, there are many great ways to save and invest so that we can experience life and still have a life. Many financial service companies are appealing to millennial clients by offering exclusive hands-on experiences, which successfully create a great buzz around the company -- everything from meeting your favorite chef to a helicopter ride over your city. Knowing your clientele is an adaptable practice that can be applied to businesses of any size.

6. Great job, you got first place, and so did everyone else. Millennials grew up in an era where participation trophies were a real thing, so be sure you are prepared to acknowledge our contributing thoughts and ideas. We grew up being told that anything was possible and watched so many of our peers break down barriers and create change. Open source communication helps us all push the limits of what is possible and help those around us when they are genuinely looking for it. As PwC put it, "Millennial investors appear to value crowdsourcing and the validation that comes from transparency and peer review."

7. What do you meme? The power of social media, content creators and influencers. All the way from our tweeting president to my grandma, everyone is on social media. Whether we like it or not, content creators and influencers have changed the way we use social media today and how we get our news and information. Memes, podcasts, videos -- you name it, if it is online we will find it and absorb it, or someone in our circle will and they will share it. Going viral is as easy as one click, and we want the funny, the stupid and, most importantly, the relevant.

Opportunities and challenges will always be there, but there may be more than we are accustomed to in the next 30 years. Hopefully, all of this can help guide your conversations or the way you think about helping the next generation.

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