By Cheryl Winokur Munk

Some next-generation financial advisors are winning over younger investors who have been overlooked -- or cast aside -- by their parents' advisors. They're doing this by turning to social media, offering personalized service with a heavy emphasis on financial planning, and cultivating referrals from other young investors and financial professionals.

"This generation wants something completely different than what their mom and dad were looking for out of their advisor," says Michael Berkhahn, a 35-year-old vice president at Graham Capital Wealth Management in Tampa, Fla. Younger investors are more mindful about the cost of financial advice and receiving personalized service, he says. There's "more sensitivity on what the person is doing for them before they move forward."

Here are four ways next-gen advisors can attract and retain young investors:

Social-media promotions. Younger people aren't as interested in attending seminars as their parents' generation, but many eat up social media. That is where advisors who effectively use Facebook, Instagram, and LinkedIn, for example, have an advantage. They can appeal to potential clients by posting short clips on topics that resonate, such as what's important for a Gen Z financial plan or how Secure Act 2.0 affects retirement contributions, Berkhahn says. An advisor's social posts can have a wide reach through friends, friends of friends, and reposting. "Relying on social media has been a way for us to cultivate new relationships," he says.

Some advisors may also consider developing a relationship with well-vetted influencers. Berkhahn's firm, for example, uses the Dave Ramsey SmartVestor Pro program to generate leads. To participate, an advisor needs at least two years of full-time experience as a registered investing professional, and to work for a registered investment advisor or broker-dealer firm. They can't be employees of Ramsey Solutions, nor can their firm be affiliated with the organization, according to information on Ramsey's website.

Turning on the TLC. Younger investors want personalized attention, says Aaron Marks, founding partner and chief strategy officer of Amplius Wealth Advisors in Blue Bell, Pa. Many are looking for financial planning help or innovative strategies in terms of taxes, budgeting, and structuring college savings for young children. When people are in front of you, pay attention, says the 39-year-old advisor. "That is what they want. That is why they're switching from their parents' advisors," he says.

He offers the example of a prospective client in her late 30s who came to him because she was frustrated with her lack of a relationship with her parents' advisor. The advisor didn't do a financial plan for her and failed to discuss areas like cash flow, savings strategies, or how to budget -- all important in helping her save for her children's college. Marks says he surprised her by offering to do a financial plan with no strings attached -- something he routinely does to help ensure it's a mutually beneficial relationship. "I can't prescribe the medicine without doing the checkup first," he says. The woman became a client.

Start with short-term goals. Many next-gen investors need help prioritizing their short-term goals, says Julia Bartak, a 30-something financial advisor at Edward Jones in Mission, Kan. They may want to buy a house but don't have emergency savings, or they may have high-interest debt and aren't contributing enough to their 401(k) to get the company match. They have so many competing goals that they may not know where to start. Providing guidance around financial planning priorities encourages long-term advisory relationships. And happy clients often refer their friends who need similar help, Bartak says.

She offers the example of a client in her early 20s, a recent college graduate, who wanted to save for retirement. However, she didn't have much of an emergency fund because she was aggressively paying off low-interest-rate debt. Rather than do this, Bartak advised the client on the importance of emergency savings, and the client shifted her focus. About a year later, the client called her, ready to contribute to a Roth, having completed the initial objectives they discussed.

Some advisors don't want to work with people who lack extensive assets or wealth, but Bartak says she takes a different approach. "I think everyone has potential. If they're that focused on saving so young, they're going to be a good client later on."

Networking to cultivate referral sources. Breanna Seech, a senior wealth advisor in her mid-30s at Mariner in Grand Rapids, Mich., has a handful of clients under age 35 who have sent her significant business. One client in his early 30s has referred her at least six opportunities, and three of those have become full-service clients, she says. For Seech, the secret sauce with younger clients is understanding their priorities and helping them come up with creative solutions.

Many advisors might suggest young investors max out their retirement accounts, but people in their 20s and 30s often have more pressing priorities, such as buying a car, upgrading from a starter home, or possibly buying a vacation or rental property. With the prevalence of Airbnb, these questions come up more often with younger people, Seech says. "It seems like a gold mine of passive income," but it isn't just the income. It's about "helping someone evaluate and go through the numbers of the after-tax yield on the principal."

Bridget Costello, a 42-year-old senior financial advisor at Kayne Anderson Rudnick in Los Angeles, has developed relationships with attorneys, accountants, insurance agents, corporate trustees, and small-business consultants who refer business to her. Many of those seeking her services are younger investors who have relationships with these other professionals but have avoided their parents' financial advisor. Often, it's because they haven't felt the TLC, according to Costello. They like the idea of building long-term relationships, and don't want to build one with an advisor nearing retirement. "They want to work with someone who's going to be around for decades," she observes.

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March 20, 2025 08:23 ET (12:23 GMT)

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