Some Fun Statistics Gen X: Born (35-54 years old) Gen Y: Born 1980 – 1999 (Ages 15 to 34 years old) Gen Y / Millennials are largest generation in history 92 million Millennials vs. 76 million Baby Boomers $30 trillion will pass from Boomers to Millennials over the next 30 years 42% of NextGen investors prefer to work with someone within 10 years of their own age

Traditional Approach to Gen Y

“Pink It and Shrink It”

Working with Gen Y requires a complete redesign of your firm’s existing service model

What Must Change: Financial planning process Advisor leading the meetings Investment management How you get paid Meeting virtually Technology Marketing

Financial Planning Process Less of This Extensive estate planning High level tax planning Social security Retirement income Time-intensive investment process More of This Debt management – student loans, mortgages, etc. Lifestyle design Starting businesses/side hustles Mini-retirements Travel rewards Developing savings habits

How You Get Paid Death of AUM – It only works for people with money How many bills do you pay OTHER than monthly? Why wouldn’t you pay your planner monthly?

How You Get Paid Typical fee structure: ▫$1,000 Upfront ▫$100 - $200/month (or more) depending on complexity ▫1% of AUM on any assets managed You should also offer a one-time service ▫ get-paid-to-market-your-advisory-firm/

Managing Investments Most firms simply can’t manage smaller accounts due to time- intensive process Consider a TAMP such as Betterment Institutional ▫Outsource most of the work for.25%

Meeting Virtually Think about your peer’s typical day ▫When do they have time to come to your office? All you need is Skype, Google Hangouts, or Join.me

Technology Budgeting software ▫Guide Financial, Balance Financial Cloud based performance reporting ▫Blueleaf Cloud document sharing ▫Box, Dropbox, Google Drive Electronic Signature ▫EchoSign, DocuSign

Advisor Leading Meeting 42% of NextGen investors prefer to work with someone within 10 years of their own age Your peers want to work with you

Marketing It all starts online ▫Blog ▫Social media ▫Podcasts ▫Newsletter ▫Search Engine Optimization This all requires a great website

Is Gen Y Profitable? Assume 100 Clients with $50,000 investments - $1,000 upfront, $150/month, 1% AUM Income ▫$100,000 of upfront fees ▫$180,000/yr recurring revenue ▫$50,000/yr AUM revenue Expenses ▫TAMP: $12,500 ▫Junior Advisor (YOU!): $60,000 ▫Additional Technology: $10,000 ▫Online Marketing: $3,000