Effectively Serving the Next Generation of Clients

Presented by: Rianka R. Dorsainvil, CFP®

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@Rianka_D

#FPAoftheTriangle

#SparkConversation

#NexGenClients

Discussion topics:

• Facts about YGC

• Who: Next Generation of Clients

• What: Common Needs

• How: Efficient Service Model

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Quick Facts about YGC

Founder and President of Your Greatest Contribution (YGC), a 100% virtual fee-only comprehensive financial planning firm dedicated to serving first generation wealth builders, entrepreneurs and thriving professionals in their late 20’s, 30’s and 40’s.

• No investment minimums• Retainer based model• Video conferencing for meetings• 100% paperless• Virtual staff• Recorded training material for staff• Collaboration tools• Leveraging social media

1.Who Are the Next

Generation Of Clients?

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Current Age Born between 1981 – 1996 or between ages of 22-37.

Wealth Transfer In 2019, millennials are expected to take control of $7 trillion in liquid assets as a result of the largest generation wealth transfer in modern history.

Workforce56 million millennials - largest generation in the U.S. labor force.

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The Next Generation of Clients

Millennials make up 14.7% of those with

assets over $2 million.

On average, millennials are saving

8% to retirement plan

Six out of 10 expect to be financially

better off than their parents.

There is a misperception that millennials do not have assets or an income to support the need of a financial planner:

2.5 million millennial households bring in

more than $100,000 income

Statistics from Nielsen, BankRate, and T Rowe Price

Millennials are approaching a level in their career where they need financial advice. They are indeed becoming HENRY’S – High Earners Not Rich Yet. Millennials have not yet amassed a large nest egg, but are well on their way.

The Next Generation of Clients

““The focus of financial planning for millennials is not all about wealth

management but wealth accumulation.”

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2.Common Needs of Millennial Clients

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Financial Advice at Various Life Stages

Early Stages of #Adulting

- Understanding paycheck

- How much to save towards retirement

- Managing a budget

- Paying off debt

First Big Promotion

- Understanding taxes & withholdings

- Discretionary income

- Competing goals of saving vs debt repayment

Marriage / Partnership

- Merging finances

- Review & update health ins.

- Updating beneficiaries

- Purchasing life ins.

New Addition to Family

- Pre-delivery planning

- Plan for maternity/paternity leave

- Adjust estate plan

Making Big Purchases

- Buy or lease a car

- Rent vs buy a home

- Higher education

Caring for Parents

- Taking over bills

- Downsizing home

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From the simple:• Using technology to get

organized and track net worth and investments

• Learn how to budget and encompass short term, mid term, and long term goals

• Creating a plan to build an emergency fund or pay off debt

• The true value of the process of building and sticking to a plan

• Learn the math behind how to build wealth

To the slight more complex:• How and why to build a portfolio a

specific way (asset location)

• How to work with complicated employer plans and compensation (ISO, NQSO, RSU, Warrants, Grants, etc.)

• Business Owners and the plethora of things this opens up: SEP IRAs, Solo 401ks, bookkeeping, learn how to think like a business owner

• Tax planning and for some, tax prep

• Coordinating services with allied professionals

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Financial Advice at Various Life Stages

3.Fee & Service Models

for Millennials

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Alternative Fee Structures

Percentage of Net Worth - Percentage of liquid net worth

- i.e. 1% of $150,000 = $ annual fee

Retainer - Minimum annual fee based on complexity

- i.e. $4,000 annual retainer

Ask Me Anything (AMA) - Minimum of 2 hours of conversation or planning

with client - i.e. $500 for 2 hours, one time payment

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Project Base - Minimum of 2 hours of conversation or planning

with client. Estimate time of project. - i.e. $1,500 for 6 hours , one time payment

The Art of Finance

Think Outside of the AUM Box

• Firms have the conversation around millennial planners serving their peers and how this goal can be supported.

• Firm owners should not underestimate the impact of multigenerational planning as a source of new business.

• Millennial planners can grow with millennial clients together, much like baby boomer planners grew with their baby boomer clients.

Tools to Support the Process

Other

• Social media • Buffer• Canva

• MessageWatcher• Google Analytics

Operations

• Calendly• Wealthbox

(CRM)

• Timeular• Slack

Client-Facing

• Zoom• YNAB • eMoney

• Google Voice • Google Forms

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Set Clear Expectations

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YGC Onboarding Process

Planning Process Duration Overview YGC Actions Client Actions

Client Website Meeting 30 minutesThis meeting provides an introduction to your YGC client website.

We will provide a general overview of the website and review any information you've provided so far. We will also show you how to aggregate your accounts and upload documents. Once all requested documents are received, we will follow up with additional questions or request additional documents (if needed).

After meeting, please enter information on your YGC client website, upload any remaining documents, and answer follow up questions (if needed).

1 - 2 weeks between meetings

Discovery Meeting 60 - 90 minutes

This is the first step togathering the informationrequired to complete yourcomprehensive financial plan.

This meeting will focus on your money history, goals, and values along with some high level financial information. After the meeting, we will follow up with any questions and send a list of documents needed to start the financial review.

There is no preparationrequired for this meeting. After our meeting, please review and upload any remaining documents to your client vault.

YGC Onboarding Process

Planning Process Duration Overview YGC Actions Client Actions

2 - 3 weeks between meetings *YNAB requires an additional 3 weeks of meetings*

Data Verification Meeting 60 minutes

The purpose of this meeting is to clarify your goals and ensure that we are capturing everything that is important to you.

During this meeting, we will review your net worth statement and basic cash flow. We will also discuss specific items that pertain to your goals and areas of concern. After the meeting, we will modify the plan and/or assumptions andprepare the final draft.

If there are any outstanding documents requested, please provide those at least one week before this meeting.

3 weeks between meetings

Big Picture Meeting 90 minutes

During this meeting, we deliver the financial plan. We will present our observations and recommendations and determine the next steps forimplementation.

If there are no changes, we will prioritize your action items, set target deadlines for completion, and set a establish a schedule for follow ups and reviews. If there are changes, we will make adjustments and follow up with a final draft.

After the meeting, please review the plan and follow up with any questions or concerns. Once the final draft of the plan is complete, we will move into the implementation and review phases.

YGC Onboarding Process

Meeting Duration Overview

Immediate Actions / Follow up Meeting if necessary

60 minutes Follow up meeting if necessary.

3 weeks between meetings

Investment Planning Meeting 90 minutes

This meeting will focus on a thorough review of your investment portfolio and provide observations and recommendations based on your goals and risk tolerance profile.

3 weeks between meetings

Risk Management Meeting 90 minutesThis meeting will focus on a thorough review of your insurance policies for life, disability, and long term care, if applicable.

3 weeks between meetings

Estate Planning & Education Planning Meeting 90 minutesDevelop an estate plan that makes your wishes clear.Additionally, we will review and recommend investment vehicles for education planning needs.

YGC Client Service Calendar

Quarter One (January – March)During the first quarter, clients will attend a meeting via video to discuss the following topics: 

• Set annual goals• Cash flow & debt analysis including check-in with

YNAB• IRA contribution check In• Annual credit score and credit history review

Quarter Two (April – June)During the second quarter, YGC will contact clients via email about the following topics:

• Review tax returns• Estate planning review (every 2 years or as needed) • Investment review & recommendations• Real estate, mortgage, and refinance updates• Quarterly check-in with YNAB

Quarter Three (July – September)During the third quarter, clients will attend a meeting via video to discuss the following topics:

• Mid-year goals & cashflow check-in • Update and review financial plan assumptions• Insurance policy review• Quarterly check-in with YNAB

Quarter Four (October – December)

During the fourth quarter, YGC will contact clients via email about the following topics:

• End of year tax planning • Employee benefits review • Investment Review & recommendations • Quarterly check-in with YNAB

Takeaways

1 2 3Advice Needed! You’re Needed! Think Outside of Box

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Thank You!

Let’s stay connected!

Rianka R. Dorsainvil

@Rianka_D

Rianka R. Dorsainvil

info@RiankaDorsainvil.com

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