“Barely Boomers” a New Challenge for Financial Advisors – Report

14 December 2005

The youngest of the baby boom generation, the so-called “barely boomers” have more sophisticated financial needs than their older boomer counterparts, according to a report by the Spectrem Group, a US-based research firm. These individuals, who between 40 to 45, represent the youngest of the baby boom generation, have more sophisticated financial needs than their older brethren, according to the study. A higher percentage of affluent barely boomers, for example, hold hedge funds, private equity and futures investments than the other baby boomer segments for each asset class, said the report. In addition, said the Spectrem report, one-third of barely boomers hold stock options and 30 per cent hold restricted stock, higher than the other baby boomer segments. Looking at asset allocation, nearly a third of their portfolios is dedicated to real estate. This presents a unique challenge to financial services providers, says the report. Serving the barely boomer segment of the affluent market requires advisors who possess a particularly broad skill set. Indeed, just 24 per cent of barely boomers use full service brokers as their primary advisors, lower than 37 per cent for working boomers and 31 per cent for retiring boomers . That is also lower than retirees at 32 per cent. A higher percentage of barely boomers choose accountants , independent financial planners and investment managers as their primary advisors than the other baby boomer segments, said the report.