The Great Wealth Transfer is set to redefine our our practices. With an estimated $124 trillion expected to pass between generations by 2045, the advisors who thrive will be those who can build multi-generational relationships.
But this massive opportunity is largely untapped. Recent research shows that advisors have reached out to only 13% of their clients’ children, leaving the vast majority of future relationships to chance.
The good news is that the gap can be bridged with a deliberate approach.
Step 1: Lay the Foundation With Your Current Client
Engaging the next generation begins with the client who already trusts you, but it must be handled with care. The goal is to position this as part of their legacy planning, not as a business development strategy.
Try these conversation starters during your next review:
As we look at your long-term goals, have you thought about how you’d like to prepare your children for managing this wealth? I can help facilitate that conversation when you’re ready.
I’m putting together educational materials on market trends and financial wellness. Would your children find a copy valuable as a resource?
This approach frames your outreach as a service to your existing client, reinforcing your role as their trusted partner.
Step 2: Build the Bridge to the Next Generation
Once you have your client’s blessing, your first interaction with their heirs is critical. It’s not a sales pitch; it’s a value proposition. They’re independent researchers who value transparency over jargon and consume information in quick, digestible formats.
Instead of a formal meeting, find organic ways to connect:
- Create and share short videos or visually engaging one-page guides on topics they’re actively searching for. Think “A 60-Second Guide to Your 401k Options” or “Is a Roth IRA Right for You?” This provides immediate value on the platforms they already use.
- Offer a no-strings-attached consultation to review their current financial situation—like their employer’s benefits package or their own investment app portfolio. Frame it as a complimentary service for your clients’ children. This respects their independence and immediately demonstrates your expertise on their terms.
By providing tangible value and demonstrating you understand their unique priorities, you can potentially earn their trust independently.
Step 3: Evolve Your Practice for a Lasting Partnership
Connecting with the next generation requires evolving your practice. Consider:
- Your Tech Stack: Next Gen expects seamless digital experiences. Collaborative platforms and flexible communication channels are no longer optional—they are the foundation of a modern advisory relationship.
- Your Own Legacy: A well-defined succession plan for your own practice is one of the most powerful tools you have. It demonstrates stability and assures the entire family that their legacy will be in capable hands for generations to come.
The Right Partner for the Future
Navigating this transfer is all about proactive partnership and you shouldn’t have to build this bridge alone. At Kovack, our role is to provide the flexible technology to engage the next generation, the education to guide their unique journeys, and the direct support that gives you the freedom to build a truly multi-generational practice.
If our approach to building a modern, legacy-focused practice resonates with you, we invite you to learn more. Let’s build the future of your practice, together.
*For illustration and educational purposes only
Kovack Financial Network is a registered DBA name of Kovack Financial, LLC. Securities offered through Kovack Securities, Inc., Member FINRA/SIPC.
6451 North Federal Highway, Suite 1201, Fort Lauderdale, FL 33308, (954) 782-4771. Investment advisory services offered through Kovack Advisors, Inc., an SEC Registered Investment Advisor. Kovack Securities and Kovack Advisors are independent subsidiaries of Kovack Financial, LLC.*This example is provided for illustrative and educational purposes only.
