RSS Facebook Twitter LinkedIn

Featured Advisor

Srbo Radisavljevic
Managing Principal/Investment Advisor

Edge Portfolio Management


State: IL

At Edge, a low client to advisor ratio allows for personal and customized service for each individual.  Our goal is to work as a team for each client to provide not only portfolio management but wealth coordination and financial planning.  We make every effort to have frequent communication with our clients and to provide timely response to calls and emails.  I also enjoy spending time with my wife and three kids, following Chicago sports, enjoying ethnic cooking, and serving as a school board member for Norridge School District 80.

Click to see the full profile

Share |

Children and Financial Advisors: Making the Introduction

More than half of Millennial Millionaires think a child should be introduced to the family’s financial advisor before the child turns 12.

| BY Donald Liebenson

Have you introduced your children to your financial advisor?

In the same way that attorneys, accountants and doctors can find themselves working with succeeding generations of clients, so, too can financial advisors keep financial consultation all in the family.  Introducing family members to your financial advisor helps ensure that there will be a sense of continuity regarding financial matters and peace of mind that children would be starting from scratch once they became old enough to invest and you are not in the picture.

The majority of Millionaire investors (with a net worth between $1 million-$5 million, not including primary residence) profess to be only “fairly knowledgeable” about investing and financial products. Four-in-ten credit their children at being better at investing than they are. Thirty percent predict that their children will be better off when they reach their parents’ current age. Gen-Xers comprise the highest percentage of Millionaires by age to hold these attitudes.

Hard work and being financially responsible are attributes Millionaires are keen on passing on to their children. On a scale of 0-100, on which 100 equals “very important,” Millionaires score having a dedicated and regular savings program at 84. This is on par with those for whom getting a college education is considered a core value (86). Millionaires score 80 on the 0-100 scale on the core belief that working is very important for older teenagers.

One of the primary benefits wealthy investors see in working with a financial advisor is that the advisor increases their knowledge of investing, according to Spectrem Group research. It only follows they would want the same for their children.

But at what age should that initial introduction be made?

This question was asked in a Spectrem Group study,  Effective Communication Techniques: Attracting and Retaining Current and Next Generation Clients.  In the opinion of investors with a net worth of at least $1 million, adult children would be better served by an introduction to the family financial advisor. More than half of Millionaire respondents said that at the earliest, the introduction should come after the child turns 18. More than one-in-five (20 percent) believe the introduction should not come until the child is at least 25 years old.

But there are those who have a sooner-the-better mindset when it comes to introducing their children to their financial advisor. Said one baby boomer survey respondent, “(The child) has to understand the value of things. It’s a very important part of life, so the younger they start the better.”

Age is a factor in determining the appropriate age to introduce one’s family members to their financial advisor. More than half of Millennial Millionaires think a child should be introduced to the family’s financial advisor before the child turns 12.

About one-in-five profess it doesn’t matter at what age a child is introduced to a financial advisor.

 A separate Spectrem Group study of Millionaire households asked what these wealthy investors consider to be the best method for educating their children or grandchildren about their family’s financial situation. Almost half said it would be most constructive for the financial advisor to meet with their children or grandchildren to best ascertain the knowledge they needed. Roughly 40 percent said they would want their advisor to have a one-on-one educational meeting with their children, while one-third said they would want their financial advisor to create a financial plan for them. One-fourth are of the “give-a-person-a-fish” school, meaning they would want their financial advisor to provide their children with materials to study so they could learn on their own.

Takeaways for Investors: 

·         You are the best judge as to when would be most appropriate age for a financial advisor to be introduced to your children. Take the initiative if your financial advisor has not asked for an introduction to meet your family members.

·         Prepare your children for the introduction by explaining what a financial advisor does, how long you have worked with the advisor, and how he or she has helped you. 



©2017 Spectrem Group


About the Author

Donald Liebenson

Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.  

A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.