Older generations had it easy
When Turner is advising those below 40, he is often finding they are more likely to have done some of their own research.
However, Turner said he was "not worried at all" about whether more self-taught generations could disrupt the advice industry’s reliance on families keeping the same adviser.
"As long as I can be visible online, I can support the younger generation," he said. "I don’t really get enquiry emails from people below 40.”
He argued that younger people are conscious about making their own stamp on the world and are more open to modern ways of making money versus relying on well-trodden paths taken by family members.
“They’re inclined to do their own research,” said Turner. “They won’t necessarily do what their parents did.”
He added: “Older generations with large defined benefit pensions and cheap houses which have shot up in value have been able to grow a lot of their wealth pretty mindlessly. The market sort of did it for them.”
Fees made simple
Fee structures are not and should not be a barrier to younger people seeking financial advice, according to Turner. In fact, they are pretty easy to fix, he explained.
“You just change the entire fee structure for someone with a little amount,” he said.
“Charging 1-3 per cent to set up a policy with £200,000 doesn’t work. Younger people don’t have these sorts of assets upfront. Instead of doing it all at once, you can have a policy management fee.
“It’s better to have an insurance policy in your 20s. Premiums are so much lower. People can make their plan very watertight at an early age.”
Many advice firms still work almost solely with clients whose assets sit north of at least £50,000 due to their fee structures.
Unlike the majority, however, Turner’s employer AHR gives him what he described as “a good degree of autonomy” to serve younger clients in different ways.
“Everyone assumes that to make money, clients have to have a lot of wealth. That’s simply not the case.
“It’s about looking at how to get a young client set up in a tax efficient way,” he explained.
“You can set up investments and insurance which generate income for you as a company and at the same time help the individual.”
ruby.hinchliffe@ft.com
