Advisors Urge 401(k) Matches to Win Next-Gen Clients

Financial advisors are advising newly employed adult children of clients to enroll in their employer 401(k) plans and contribute at least enough to capture any employer match. Firms say these discussions are a way to begin relationships with the next generation.

Outreach often comes around graduation and first jobs. Advisors who serve mainly parents describe reviewing benefits, enrollment deadlines, contribution percentages and the choice between Roth and pre‑tax accounts with recent hires.

Mitchell Kraus, co-founder of Capital Intelligence Associates, said the firm treats clients’ children as clients because their financial choices can affect parents’ plans. “The best place to start is the 401(k) match,” Kraus added.

Frani Feit, senior wealth advisor at Advisors Capital Management, walks graduates through the mechanics of enrolling and picking contribution levels. She described her role as neutral, aiming to help young workers understand options and begin saving without pressure from parents.

Laurie Allen of LA Wealth Management noted some parents hesitate to offer direct financial instruction because they feel awkward or worry they are not the ideal example. Advisors can open the conversation and provide an independent source of guidance.

Advisors cite relationship building as a reason for outreach. Eric Berlin, founder of Edgewood Wealth Management, wrote that discussing a client’s children signals involvement in the family’s broader financial decisions. Britton Williams of Calamita Wealth Management added that these initial conversations can lead to planning on weddings, home purchases, student loans and saving for future children.

Practical matters such as cash flow and tax treatment shape how much a young employee can contribute. Dale L. Shafer of Life Moves Wealth Management described starting with cash flow and tax considerations, then deciding how much to put into an employer plan versus a Roth IRA. He reported younger clients have been receptive to long-term planning.

Luke Delorme, director of financial planning at Tableaux Wealth, advised graduates to contribute aggressively enough to capture the maximum employer match. “If your employer matches your contribution, try to contribute the highest amount that’s matched,” he wrote.

Advisors recommend three clear steps for newly employed adults: enroll in the employer plan, contribute at least enough to receive the full match and get basic guidance on account type and contribution level so savings can begin.