How Advisors Can Succeed With Millennial Investors

A high-earning and highly educated group, millennial investors are the fastest growing generation of investors. Advisors who tailor their services to this demographic can benefit from their growth in numbers and investable assets.

Millennials, now in their 30s and 40s, are the fastest-growing generation of investors, with evolving financial needs and increasing wealth reshaping their approach to money management.

They’re not opposed to forging their own path and many remember the days both before and after the internet. Comfortable with digital tools, they expect an omnichannel experience, engaging with financial services across multiple platforms. Many actively seek services to manage cash flow, private banking, and debt reduction, often working with advisors to develop their financial plans.

While engaged, millennials need more than basic guidance. Their financial needs are complex and dynamic, requiring tailored, holistic support that aligns with their goals and aspirations.

Key Traits of Millennial Investors

Millennials are at varying stages of career development, family planning, and wealth building: this could present significant opportunities for financial advisors to help address millennials’ unique challenges through financial advice.

Born between 1981 and 1996, millennials are the largest and most diverse portion of the population. Millennials face challenges like student load debt, high housing costs, and economic uncertainty, but they are more educated and have higher household incomes relative to other investor segments like hybrid, Generation X (Gen X), and women investors.¹ With an average household income of $227,000, many are entering their prime earning years and are looking to build wealth.²

As they seek guidance on both immediate financial needs and long-term goals, millennials value advisors who offer tailored, proactive advice with a collaborative approach.

Millennials navigated formative experiences, from the 2008 financial crisis to a global pandemic, which impacted their views on their financial priorities and formed their investing habits.

A Resilient Cohort: Despite facing higher debt burdens, millennials express notable optimism, with 74% feeling positive about their financial futures, compared to 64% of Generation Xers.³

Tech-savvy: With 47% of self-directed millennials relying on digital tools for investment decisions, they expect technology to complement—not replace—personalized advice.⁴

Resourceful: 82% of millennials report being a hybrid or self-directed investor, meaning they use a variety of resources including online investment platforms and advisors.⁵

Educated: Millennials are highly educated, with 91% having completed undergraduate or graduate degrees.⁶ They’re educated and confident in their ability to navigate their finances.

Millennial Investor Preferences to Consider

Advisors have the opportunity to be the expert element millennials want in their financial health. While a tech-savvy millennial might already be well-versed in using tools and resources to handle their finances, a financial advisor can offer what a self-directed platform cannot: a partnership that brings in experience and expert solutions.

Figure 1: What Do Millennial Investors Think Are Cons of Self-service Platforms?
Percent of Respondents

Source: State Street Global Advisors Research Center, 2024 Influential Investor Segment Study, September 2023. Q: What are the cons of using a self-service online trading platform(s)?

Millennials seek advisors who are not just providers of products, but partners in achieving their life goals. Here’s what resonates with them:

1. Collaboration Over Command: Millennials prefer a partnership model where they co-create their financial plans. 67% of millennials want collaborative decision-making.⁷ They value advisors who listen, adapt, and engage as equals.
   
   
2. Proactive Communication: Millennials favor frequent and meaningful interactions. About 25% of millennials desire weekly or even daily touchpoints, underscoring the importance of staying connected.⁸
   
   
3. Personalized Solutions: From managing debt to exploring alternative investments, millennials expect tailored advice that aligns with their unique circumstances and values.
   
   
4. Transparency and Value: Millennials demand clear value for the fees they pay. Advisors must demonstrate how their services address both immediate and long-term goals.

Turning Insights into Action: Strategies for Advisors

1. Redefine Engagement: Millennials value collaboration and education. Advisors can engage effectively by offering learning opportunities through videos, podcasts, and other formats that focus on achieving lifestyle goals. Addressing key concerns – such as managing liquidity with cash flow strategies or balancing competing priorities through multi-goal planning – can position advisors as collaborative problem solvers who empower clients to take an active role in their financial journey.
   
   
2. Leverage Technology for Collaboration: Millennials thrive in tech-enabled environments where technology enhances, rather than replaces, human expertise. Tools that nudge, remind, and organize financial tasks foster productive conversations and encourage timely action. Interactive visualizations of financial data – such as risk assessments or portfolio performance – make abstract concepts tangible, building trust and confidence in decision-making.
   
   
3. Highlight Non-traditional Investments: Millennials’ appetite for alternatives like private markets, digital assets, and real estate stems from their desire to explore new opportunities and diversify their portfolios. Advisors can differentiate themselves by guiding millennials through due diligence, offering actionable insights, and evaluating how these investments align with their broader financial goals.
   
   
4. Link Advice to Goal Achievement: Millennials prioritize financial guidance that delivers measurable outcomes tied to their goals. Advisors can demonstrate their value by quantifying the impact of recommendations. For example, illustrate how tax loss harvesting can support retirement savings growth – a top priority – or how staying invested during market volatility can maximize long-term outcomes through compounding returns, dividend growth, and capital appreciation.

The Opportunity Ahead

Now is the time for advisors to emphasize the transformative power of financial planning, helping millennials navigate diverse goals, manage debt, plan for retirement, and secure their financial futures. Advisors who provide services that proactively address their financial goals and that help to supplement their mixed-method investment strategies and complex goals have the opportunity to gain the trust of the millennial investor. By aligning with their values and preferences, advisors can play a vital role in shaping the future of wealth management for millennial investors, to ensure their practice’s relevance and growth in an evolving market.

Explore our practice management insights for more ideas on how to propel your practice forward.