Paul, Sr., left a $3 million estate to Paul, Jr., and the first thing junior did was fire his father’s advisor. It may not be a tale as old as time but it’s a tale for our time. Baby Boomers (born from 1946 to 1964) will transfer $51T to their heirs by 2042 and 70 percent of those heirs are likely to switch advisors, according to Cerulli Associates, U.S. Retail Investor Products and Platforms 2021.
Boomers, Generation X (born from 1965 to 1980) and Generation Y (born 1981 to 1994) approach investing differently than the Greatest Generation (born from 1901 to 1927). They want advice tailored specifically to them. They’re also just as likely to take investment advice from friends, colleagues and social media posts as they are from investment advisors. They’re so accustomed to relying on technology to get things done, that investing with a robo-advisor – a business that didn’t exist 10 years ago but whose AUM, according to market research firm Statista, is expected to reach $1.4T by 2025 – just makes sense to them.
Despite these challenges, advisors have plenty of opportunity. A report from Cerulli and Phoenix Marketing notes that 40 percent of investors in their 40s and 22 percent of all investors expect to increase their reliance on advisors.
Time – a need so universal that Pink Floyd, Boy George and the Chambers Brothers wrote songs about it – is a key to capitalizing on opportunity. Case in point, 56 percent of investors surveyed by Statista stated that an advisor’s willingness to commit time to understanding their unique circumstances is the most important criteria in selecting an advisor.
Advisors can save time and increase their capacity to add new clients and support existing ones by eliminating tedious administrative tasks such as: tracking time-sensitive activities, gathering data, logging into multiple applications, and using manual processes.
Mediant’s innovative MIC Wealth Manager platform does just that. Advisors have single sign-on to the platform, which they use to vote proxies, review shareholder communications their clients receive and make reorg elections online. A dashboard proactively spotlights time-sensitive activities including upcoming meetings and positions that must be voted within the week.
MIC Wealth Manager makes it personal by providing advisors with an inventory of every proxy statement, prospectus and stock buyback offer each client received. This helps the advisor anticipate client questions and provide the tailored advice they expect.
The time-consuming process of manually tracking reorg elections in an Excel spreadsheet and voting via email is obsolete. MIC Wealth Manager provides an automated process to centrally manage current offers, retrieve past ones and make elections online.
The platform also eliminates the repetitive task of voting individual accounts one at a time. Advisors can vote multiple ballots via single ballot.
As the Chambers Brothers would say, “Time Has Come Today” for advisors. MIC Wealth Manager gives them more of their most valuable commodity.