Millennial Investor Strategies for Advisory Firms

As the oldest millennials enter their peak earning years, investing and retirement may be weighing heavily on their minds. While 82% of millennials say their financial plan could use some improvement, only 26% have sought out professional financial advice, according to Northwestern Mutual’s 2025 Planning & Progress Study.¹ Leveraging technology, developing personalized solutions and targeting appropriate channels are key when it comes to attracting the millennial investor.

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Understanding How Millennials Invest

Every client is different, and when it comes to millennials, several things distinguish them from other generations. Having a good idea of a millennial’s mindset can help you deliver the investment services and products that align with their needs and goals.

Consider some of the data:

• Wealthy millennials are more likely to diversify, according to a 2024 Boston Consulting Group and Worth Media report. ² When asked about alternative investments, 63% expressed interest in private equity, while 62% selected cryptocurrency as a top choice.
• The millennial crowd is more skeptical of traditional investments and their ability to generate above-average returns, according to a 2024 Bank of America Private Bank Study of Wealthy Americans. ³ Three-quarters of investors aged 21-43 believe it’s no longer possible to beat the market with stocks and bonds alone.
• Millennials are 50% more likely than Gen X to hold speculative stocks, and 39% are bullish on value stocks, according to a 2025 Motley Fool Generational Investing Trends Survey. ⁴

While millennials have specific opinions about how they want to invest, they don’t always know how to go about it. A 2024 RBC Wealth Management report found that 55% of millennials say they aren’t sure where to turn for financial advice, while 80% say that reputable advice is hard to find. ⁵ Nearly three-quarters (71%) said their portfolios were too complicated to leave to a robo-advisor. Meanwhile, 91% of high-net-worth millennials said they would trust a financial advisor with their financial plan.

So what does this mean? Essentially, millennials are accumulating more wealth. And many of them are looking for professional advice on how to manage it. They want to be invested in the market, but they aren’t necessarily interested in replicating their parents’ portfolios. They desire long-term financial security, but they also aren’t afraid to try riskier investments.

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Millennial Investor Strategies for Financial Advisors

Drawing millennial clients into your practice may require some adjustment in terms of planning. As you build your millennial investor playbook, consider including some of the following investment strategies.

Create Values-Aligned Portfolios

Sustainability and ESG practices have found favor among millennial investors. According to a 2024 Morgan Stanley global report, 97% of millennial investors say they are “very interested” in sustainable investing. ⁶ The report found that 90% of younger investors (millennials and Gen Z) would choose a financial advisor based on their sustainable investment offerings.

In terms of what American millennial investors desire, 44% say their top reason for sustainable investing is to produce positive real-world outcomes while achieving a market-rate return. If your firm doesn’t offer any ESG or sustainability-focused portfolios or investments, developing a new service offering in that area could help you capture more of the millennial investor crowd.

Explore Alternatives

Millennials have demonstrated that they’re open to moving beyond traditional stocks and bonds to create more diversified portfolios. Here are some of the alternatives millennials (aged 21-43) say they’re most interested in, according to Bank of America:

• Real estate (31%)
• Cryptocurrency/digital assets (28%)
• Private equity (26%)
• Direct investment into companies (22%)
• Tangible assets (13%)
• Private debt (11%)

Domestic stocks and bonds were in the middle of the pack. Meanwhile, 93% of younger investors included in the report said they would likely allocate more assets to alternatives in the next few years. If you have expertise in alternative investments, there may be an opportunity for you to market your advisory business to the millennial crowd.

Utilize Technology

Technology is woven into the fabric of millennials’ lives, and many younger investors want to work with a tech-savvy advisor. For example, the Northwestern Mutual study found that 54% of millennials preferred an advisor who understands and utilizes artificial intelligence and generative AI in their practice.

How can you use tech to develop investing strategies for the millennial investor? Consider these ideas:

• Data analysis. AI investment tools are skilled at analyzing large volumes of data at lightning speeds and using them to create predictive models. These models can help inform your recommendations and decision-making when shaping millennial portfolios.
• Portfolio optimization and risk management. AI’s analytical capabilities can also be put to work to optimize millennial portfolios. It can also spot potential risk factors before they become a serious threat.
• Visualizers and scenario modeling. Being able to show a millennial investor what a potential outcome looks like with a visual aid, such as a graph or chart, may be more impactful than words alone. AI-powered scenario modeling and visualizer tools can help present “what if” scenarios in an easily digestible format.

Aside from investing, AI tools can also help you run your business more efficiently, as well as deliver a better client experience for millennials. For instance, you may use AI note-takers to manage client meetings. This leaves you free to focus on active listening and having more in-depth conversations. Or you may create an AI agent to handle scheduling, basic client questions and client support so millennial investors feel seen when they need help.

Technology can also prove helpful as a marketing tool to attract millennial investors to your firm. SmartAsset AMP (Advisor Marketing Platform), for instance, uses a holistic approach to help advisors automate their marketing and connect with leads who are ready to work with an advisor. Learn more about this marketing platform leverages tech to help you grow your business.

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Bottom Line

The typical millennial investor may face some unique challenges. They’re juggling student loan debt, planning for retirement and starting families. So they have a lot to balance as they map out their financial future. Developing investing strategies that are likely to appeal to wealthy millennials or those who are in the initial stages of building wealth could help you to connect with a younger generation of prospective clients.

Tips for Growing Your Advisory Business

• Growing your firm is one of the most important things you’ll do, but you don’t have to do it alone. SmartAsset AMP (Advisor Marketing Platform) is a holistic marketing service financial advisors can use for client lead generation and automated marketing. Sign up for a free demo to explore how SmartAsset AMP can help you expand your practice’s marketing operation. Get started today.
• Nearly $124 trillion is expected to change hands through 2048 as part of the Great Wealth Transfer. ⁷ If you’d for some of those assets to end up under your management, consider how you can bridge the gap with the next generation. For instance, say your client base is primarily retirees or pre-retirees. If so, you might invite them to a joint financial planning discussion that includes their children or grandchildren. That’s a simple, but effective way to open a conversation with millennial and Gen Z investors who may be looking for an advisor to work with.

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