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My Price Is Right: What Millennials Want From Financial Services | Investor’s Business Daily

Name Your Price: What Millennials Want From Financial Services
When millennials weigh whether to hire an advisor, they want assurance that they’re hiring an educator acting in their best interest. They don’t want a salesperson pitching products.

They may already understand the role of a fiduciary, but many advisors still define the term. Stating at the outset that the only compensation they receive comes from the client — not from products they sell — can address concerns about hidden fees and commissions.

“When we go through the client agreement, our fees are very clearly laid out,” Lazaroff said. “We show fees in both annual and monthly terms. Millennials are used to a monthly subscription model, so we bill monthly.”

Prospecting Ideas For Financial Advisors
Because many young adults have wide-ranging financial needs, they tend to seek advisors who adopt flexible pricing options. Advisors who offer pricing to fit an individual’s situation can attract more early-career clients.

Deb Meyer, a certified financial planner in Saint Charles, Mo., charges new clients a one-time fee, currently $1,000. That reflects more frequent meetings during the first year. From there, financial planning clients pay a monthly amount based on the level of service that she provides. The amount ranges from $175 to $375.

“I give them the exact number after I meet with them, based on their net worth and income,” she said. “My practice is heavily focused on young professionals in their 30s and 40s” who welcome different pricing tiers.

She knows of other advisors who charge new clients on an hourly basis or per project. But she rejects that approach. After 10 years as an advisor, Meyer has learned that summarizing her fees on her firm’s website filters out some wavering prospects.

“Providing more pricing transparency on my website has improved the quality of leads I get,” she said. “There’s this question of whether potential clients will be deterred by seeing my fees upfront. But it’s fine if that happens because my time is valuable and I’d prefer to serve more engaged clients who are committed to the process.”

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My Price Is Right: What Millennials Want From Financial Services.

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