Financial firms must do more to engage the next generation of wealth. By April Rudin and Nick Rice
Baby boomers control more than $80 trillion in the US alone, but that wealth is set to change hands. As Boomers retire and their heirs inherit and earn their own fortunes, trillions are passing to investors who look nothing like the clients financial advisors built their practices around. Central to this shift are women: They not only control a greater share of wealth within younger generations, they also outlive men by an average of five years, meaning they will ultimately control assets currently held by their spouses. Firms that fail to adapt risk losing future business, as well as assets they already manage.
A 2024 New York Life Investments survey found, for instance, that nearly half of women (48%) felt patronized by financial advisors—compared with 36% feeling that way in 2019. Younger and more diverse investors have reported similar feelings of being treated with less respect. Little surprise, then, that studies show most beneficiaries switch advisors after they inherit.
The advisors who succeed will be the ones who listen without judgment—more like therapists than salespeople—and take seriously priorities that mattered less to previous generations. That can mean engaging with international mobility, alternative assets, financial technology, and purpose-driven wealth planning. And, crucially, seeing that these are central to how these investors think about money and what they expect from the people who advise them.
A 2024 New York Life Investments survey found that 48% of women felt patronized by financial advisors.
Take cryptocurrency. Many advisors remain skeptical, and in some markets they cannot formally advise on digital assets. But clients hold them anyway. Advisors who refuse to discuss crypto—or treat it with disdain—signal that they’re uninterested in their clients’ full financial picture. Even if they cannot advise on the investment itself, advisors should discuss crypto openly and help clients understand how it affects their broader balance sheet.
Technology is automating some of the routine work that once helped justify advisory relationships. What remains that is harder to replicate is the ability to connect with clients and adapt conversations to their specific needs. Firms that invest in training advisors for this shift will capture the opportunity. Those that don’t, will watch the wealth walk out.
Meet the authors
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Director
New York
Nick is a seasoned executive with two decades of business and media experience. He advises financial institutions and other organizations globally on relationships with key… -
April Rudin is Founder and CEO of the Rudin Group and co-author of "Wealth Management with a Difference."
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