Not long ago, wealth was typically built through years of corporate advancement, professional designations or leadership in family enterprises. But today’s fortunes are often created on a smartphone or laptop. A new generation of influencers, startup founders and tech entrepreneurs is redefining how wealth is created and how it must be managed.
Millennials and Gen Z clients are building wealth outside their parents’ traditional employment compensation and retirement accounts. According to Forbes, over 50% of Gen Z say their dream job is to become a social media influencer. This generation runs digital media businesses, launches startups and monetizes personal brands. Their income is irregular, tied to audience engagement, branding contracts and venture funding rather than predictable salaries and bonuses.
Although the majority of the rising generation earns less than $45,000 per year, according to the U.S. Bureau of Labor Statistics, those who do amass wealth are often unprepared. These new wealth creators are young, highly independent and usually earn more in a few years than previous generations did in a lifetime. Many are often obligated to present an inflated image of their lifestyle and are subject to public scrutiny. With fast success, public pressure and limited financial experience, a lack of planning can quickly become their downfall. For wealth managers and advisors, this emerging group represents both an opportunity and a call to evolve. Supporting these clients isn’t just about managing money; it’s also about helping them protect themselves and their businesses and translating rapid success into understandable and purposeful wealth.
Without systems and the early guidance of appropriate advisors who provide expertise, advice, and financial education, clients often develop poor cash management skills, overspend, and under-save or malinvest, exposing themselves to both financial and emotional risk. Advisors who establish structure and purpose early can significantly impact their clients’ financial trajectory and overall well-being.
Developing Long-Term Structures Early
The first step is defining the why—what’s the purpose of the money? Most clients aim to ensure their money lasts throughout their lifetime, so it’s important to establish financial stability before introducing complexity. Early planning provides the foundation for sustainable growth, tax efficiency and peace of mind.
That starts with entity formation and governance—creating limited liability companies or corporations to manage business income. A key priority is to shield personal assets from business liability. The entity structure depends on how the client plans to operate the business and their goals for liability protection, taxes and brand growth. For creators and founders who are beginning to monetize, starting as a sole proprietor and then forming an LLC can enable clean accounting, dedicated banking and expense tracking. As profitability grows, electing S corporation status may provide tax flexibility. As brands expand, an LLC can serve as a parent with DBAs for sub-brands, maintaining a clean structure while allowing for diversification. As the business continues to grow, clients should consider forming a holding company or corporation to support future scaling.
For personal planning, it’s important to establish dedicated personal investment accounts for savings outside of the business. Many lack employee-sponsored plans. Advisors should consider tax-qualified retirement plans like solo 401(k)s or SEP IRAs, as younger individuals often overlook retirement and tax planning. Additionally, high-profile earners may face an increased likelihood of being audited, so rigorous bookkeeping and a strong accountant are essential.
Additionally, setting up long-term investment vehicles, like trusts, early can be of significant value. Funding trusts at the start of a business and before a liquidity event can yield significant upside in protecting growth from estate taxes.
Creating separate business and personal structures also helps prevent emotional and financial burnout. Many juggle home purchases, brand partnerships and a public persona. Clear systems for budgeting, liquidity management and reinvestment protect against the all-too-common cycle of burnout.
Wealth and Well-Being
Financial planning for young, fast earners isn’t just about numbers; it’s about psychology. Behavioral finance offers a framework for understanding how emotions, social pressure and personal identity influence financial decisions. For many, the goal is alignment. Many are motivated by autonomy, impact and personal growth more than traditional markers of success. Advisors who can translate those values into financial strategy help clients achieve something beyond returns: a sense of purpose.
Sudden wealth often amplifies emotional biases. Feelings of guilt, imposter syndrome or social comparison can drive reactive spending or risk-taking. Advisors can help clients process those experiences and anchor decisions for long-term purposes. Assisting clients in defining their purpose for wealth early on enables them to see their investments reflect their values, which helps keep them engaged.
By guiding clients to define what money means to them by asking about the purpose of their wealth—security, independence, philanthropy or creative freedom—advisors can align financial strategies with clients’ identities. That might mean establishing impact portfolios, supporting sustainability initiatives, creating entities to last generations or funding creative projects that reflect their personal brand.
Advisor Evolution
To effectively serve this new generation, wealth management must evolve. The traditional top-down model, where advisors dictate strategy and clients follow, no longer fits. These clients expect collaboration, transparency, a multigenerational team and digital access.
Advisors are shifting toward co-creation models, where financial decisions are made jointly and communicated in plain language. Tech-savvy clients want to see real-time dashboards, engage through messaging apps and understand not only what’s being done with their money, but why.
Forward-thinking firms blend tax, legal and business advisory services with personal financial planning for clients whose income fluctuates between brand deals, venture rounds and content monetization. Ensuring these clients understand risk is crucial. Their lifestyle and profession are on the riskier side, so they need to view the planning they’re doing as an insurance and longevity plan that aligns with their purpose.
Technology is central to this evolution. From Artificial intelligence-driven tools to measuring the non-monetary impact of portfolios, these clients expect a seamless digital experience when interacting with their advisors more than other demographics.
As millennials and Gen Z continue reshaping the wealth landscape, advisors must evolve from portfolio managers to partners in purpose. The new advisory model blends financial literacy, emotional intelligence and digital fluency.
This shift doesn’t diminish the technical expertise of traditional wealth management; it amplifies it. Advisors who can pair financial rigor with empathy and adaptability will not only attract younger clients but also help them sustain success over decades.
