All in the family: How multigenerational wealth planning can support long-term growth for RIAs

As a registered investment advisor (RIA), you've likely cultivated deep relationships and established trust with your clients. But have you considered becoming a financial advisor to their families and heirs?

Cerulli estimates that $105 trillion will be passed down to heirs by 2048.¹ Taking a multigenerational approach—which may include evolving your service model—may help you build a future client pipeline and create opportunities to retain or attract assets from clients' children and grandchildren who are building their own wealth. Here are a few tips to better support clients and their families across generations while strengthening relationships over time.

How RIAs can build relationships across generations

To engage with the future heirs of current clients, look for opportunities to invite family members to events, educational sessions, and even client annual meetings. By making your firm an open door and positioning yourself as a trusted source for financial expertise, family members of clients may think of you when they need help managing their wealth.

Start with the fun stuff. Have tickets to a ball game? Like to host cookouts? There are dozens of ways you can get to know clients' families and develop genuine, human connections. Organize a trivia night, put together a pickleball game, or lead a community service project. A little creativity and effort can do a lot to create a welcoming atmosphere around your firm.

Education can be another way to provide value and connect with family members. Many clients are likely to see financial education for their families as an important service that addresses their worries about their children's ability to manage their wealth.

A more sensitive question to raise is the possibility of inviting adult children to annual meetings. Not every client will want to be so transparent about their finances, but some families may see value in speaking more openly about their financial plans, especially as parents age and face new health challenges (and expenses).

What services can help RIAs serve the next generation of clients?

Serving the next generation of clients may require user-friendly technology, gaining expertise in environmental/social/governance (ESG) investing, advising on debt management, offering more complex services, and supporting business owners as they plan for succession.

Communication is fundamental to every client relationship and how clients communicate continues to shift. Younger generations now expect to be in touch multiple ways. Video check-ins, messaging apps, and a client portal may be particularly important to younger clients. But that doesn't mean they're only looking for digital tools. Sometimes they want to tap your shoulder for a little extra guidance, are interested in learning about their investments, or want to carry out basic tasks like check deposits and money movements on their own. Your mix of digital and in-person communication is key.

Some younger investors may prioritize ESG factors when making investment decisions. Developing an understanding of ESG-focused investment approaches can help you engage in conversations with your clients' family members who are interested in socially responsible investing.

Life transitions can be another time to show your value. New graduates with significant debt and strong earning potential may need help managing their money and growing their wealth, especially as they prepare to buy a house or start a family. And if your clients are business owners who want to leave their company to their children while also generating retirement income, offering succession planning services can help cement your value to the whole family—and help position your firm to serve the family across generations.

Some firms expand their services as family wealth grows and multigenerational needs emerge. A family-focused RIA may take on tax advice, private investments, banking and lending, trust services, accounting, philanthropy, travel support, and even personal and digital security. These firms position themselves as the first call for any money question and make managing family wealth a holistic service.

Be there for the whole family

Family money conversations can get complicated. Every decision is shaped by deep histories and changing relationships. Clients and their families need an advisor who understands that the questions they face are about more than growing their wealth.

Becoming a multigenerational advisor may help clients feel more prepared to address their family's evolving financial needs and long-term legacy goals. Building these deeper connections can strengthen relationships and create opportunities to continue serving families across generations.

What you can do next

• Learn more about how Schwab Advisor Family Office supports single- and multi-family offices serving ultra-high-net-worth clients.
• Curious about how Schwab helps RIAs? Wealth services, technology, and business support are just the beginning. Whether you're exploring independence or considering a custodian swap, we're here to help you take your next step.