Millennials Don't Trust Advisors and I Don't Blame Them.

Written by: Conner Combs

I’m a millennial financial advisor who is skeptical of financial advisors. We grew up when Lehman Brothers was going down. Bear Stearns collapsed and took our trust with it. Our skepticism of the financial industry keeps us from utilizing the resources and wisdom that comes with a good financial advisor.

Of the 80% of millennials that consider themselves financially successful, only 15% are maintaining a professional financial advisor. A recent survey found that 80% of affluent millennials are suspicious of the commission revenue model. Over three quarters of millennials believe the financial system is rigged to favor the rich and powerful at their expense. In other words, they do not trust the system and believe advisors do not truly work for them.

But why are those 15% using a financial advisor? They value relationships not contingent upon market performance, purpose that invests money wisely, and listens closely before speaking defensively. Let me explain.

Millennials are hungry for real relationships with advisors that care more about connecting their money with their purpose and less about how an advisor’s strategy beat the market the last five years. Does that mean millennials do not care about performance? No, absolutely not. Millennials care more about having an advisor they trust and have a relationship with more than anything.

Conflicts of interest within the wealth management industry are everywhere and there has not ever been a bigger appetite for transparency than now. Millennials want advisors that truly sit on the same side of the table as them. They understand that one cannot serve two masters and we, here at Archetype, understand that too. That is why we have created a platform to do just that, serve people whole heartedly by eliminating those potential conflicts of interest. Click here for a more in depth conversation around who your financial advisor really represents.

Also like millennials, we, at Archetype, concern ourselves with words like purpose and impact. It is no secret that millennials are passionate about making a difference. Advisors should care about that too. We love to help clients understand how to maximize their impact through giving. In fact, our first event as a company was titled ‘Giving With Confidence’. Click here to read more on the ideal giving model.

Lastly, the best way to build trust with millennials is simply to listen. Take the time to hear their story, understand why they think the way they do, and uncover what matters most to them. Ask good questions that will provide insight into how they view money. One of my favorites is a question that our Founder and CEO Jeff Thomas uses frequently when meeting with new people, “What is one of your first memories about money from when you were growing up?” It is hard to take someone where they want to go without knowing where they have been.

I’m a millennial financial advisor who is skeptical of financial advisors. Though my skepticism may have been valid in some instances, I also realized I was missing out on some great opportunities.

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Sources:

https://www.fa-mag.com/news/advisors-may-have-millennials-all-wrong--study-finds-41265.html?section=3&page=2
https://www.fa-mag.com/news/affluent-millennials-still-averse-to-long-term-saving--risk-and-commissions-41286.html?section=43
http://www.pewresearch.org/fact-tank/2018/04/11/millennials-largest-generation-us-labor-force/

Conner Combs serves as a wealth advisor for Archetype Wealth Partners in Dallas, Texas. Conner is an MBA graduate from East Texas Baptist University where he also played baseball and became only the second player in NCAA history to be named Academic All-American of the year twice. His passion at Archetype is to help others live in their purpose. Archetype exists to help families thrive across generations.

 

Disclaimer: Our intent in providing this material is purely for informational purposes, as of the date hereof, and may be subject to change without notice. This article does not intend to constitute accounting, legal, tax, or other professional advice. Visitors and readers should not act upon the content or information found here without first seeking appropriate advice from a trusted accountant, financial planner, lawyer or other professional.

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