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This week I spoke with an audience of financial planners in Omaha, Nebraska about what I consider to be the most important topic facing our industry today. It has to do with the wealth transfer now underway and how we get our firms ready to serve the next generation of investors.

According to Cerulli, $84 trillion in assets is set to change hands over the next 20 years. The recipients will be primarily members of Generation X (those born between 1965 and 1980), millennials (1981-1996) and Gen Z (1997-2012), are expected to inherit $72 trillion. The remainder will be going to charity.

I talked about how our industry has been purpose-built to serve the Baby Boomer generation and that change would necessary to make the leap to serving Gens X, Y and eventually Z. A lot of this change will come about in terms of how we communicate and the user interfaces we employ. Many firms and professionals are not willing to change or are unsure of exactly how they’ll need to proceed even if they are open to it.

My research team put together some killer slides on the state of the current markets that I showed the audience as examples of the way that we are communicating every day. My research associate Sean Russo is going above an beyond to translate the work we’re doing internally into useful materials for our advisor-client meetings. To me, he represents the future of the way modern advisory firms will be augmenting their communications with clients. He is running our ground game and arming our client-facing financial planners to the teeth with the insights they need. There’s a really special thing developing between Sean, chief strategist Callie Cox and “Chart Kid Matt” Cerminaro as they work each week to reach thousands of Ritholtz clients across different mediums, from chartbooks to email blasts to media appearances to regular portfolio update videos. It’s not enough to tell clients that you have a handle on what’s happening in markets and the economy. Sean’s job is to help us show them.

Here are some of the things we are sharing and explaining to keep everyone up to speed. We’re explaining our views on everything from valuations, earnings growth, interest rates, political outcomes and international diversification:

If you’re going to advise the next generation of clients, you’re going to need to show your work. Telling them what you’re doing just isn’t going to be enough.

Ladies and gentlemen… Mr. Jason Zweig

This week we were honored to host legendary investment columnist Jason Zweig of the Wall Street Journal on our show The Compound and Friends. Jason has spent the last three decades chronicling the investing world for millions of readers and helping people make better portfolio decisions. He has been a confidant of Buffett and Munger, a co-author with Daniel Kahneman, an editor on two revised editions of Ben Graham’s masterpiece The Intelligent Investor, considered to be the best book on investing ever written. He was also an early supporter of my writing and remains the absolute gold standard for investing columnists everywhere.

Jason is an idol of mine and Michael’s. I hope you love listening to our conversation with him as much as we enjoyed recording it.

Omaha Financial Planners

I want to thank all of the great advisors who came out to hear my talk in Omaha and who showed me such amazing Midwestern hospitality this week. It’s truly an pleasure to travel to other parts of the country and encounter so many caring, dedicated and serious professionals. I get so much out of making these connections and learning from my colleagues across America. Thanks!

Okay that’s it from me today. Have a wonderful weekend, talk soon! - Josh