Many financial advisors are chasing a once-overlooked market segment: early-career professionals who welcome expert advice on budgeting, financial planning and basic investment management, even if they haven’t made a lot of money.
To attract these up-and-comers, many of them in their late 20s and early 30s, advisors are expanding their services. Merely promising to help the youth invest wisely and plan for retirement may not be enough. Also, he positions himself as Life Coach and Business Consultant.
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“We help clients plan for the important items needed to boost their confidence in achieving their life goals, their most important goals and aspirations,” said Nate Baum, a certified financial planner in Portland, Ore. Financial planning but also on budgeting, student loan repayment and career benchmarking.
“We use cash flow tracking technology to help us – and our clients – understand how much they are saving and spending,” Bam said. “With student loan repayment analysis, we dive into understanding their loan and repayment options. And we help them uncover ways to optimize their career trajectory—if their current salary is competitive and to negotiate the salary. How to do.
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In mentoring a couple in their late 30s, Bam learned they wanted to diversify their income by adding a side gig to their day jobs. He suggested how they might seek more flexible hours for their current employment and explored their plans for additional work.
Like a business strategist, Bam urged them to pinpoint their value proposition and develop ways to use each other’s skills to maximize their self-employed income while maintaining their primary income.
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Rachel Lawrence, a certified financial planner in Rochester, NH, uses a pricing model — a flat fee — that attracts a younger demographic. She offers service levels at differential price points, and only charges a percentage of assets under management for certain clients who have more assets.
Flat-fee pricing enables advisors to appeal to early-career professionals who have limited assets to invest. Instead of stock picking, their priority may be debt management or buying their first home.
Many advisors address those broad concerns with some specific coaching that encourages young clients to reach new heights in every aspect of their lives.
For example, Lawrence has a long-standing passion for personal development. She gives clients access to a pre-qualified list of counselors (including life coaches and nutritionists) for a set number of sessions.
“There is a high correlation between physical well-being and financial well-being,” she said. “Mindset issues can hold people back.”
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My husband is 50 but in his second year of establishing credit. He has some money that he wants to grow, but would any financial advisor even take on a case like his?
