Advisors bent on cultivating high net worth clients will be interested in identifying the next generation of affluent investors. “Finding the Next Millionaires”, a research paper from Boston-based Forrester Research, Inc. focuses on this target market.

The study says it takes about 10 years for most households to accumulate assets. This is reflected in the ages of emerging affluent investors. On average, the emerging affluent are 59 years old — 10 years older than the non-affluent.

The study recommends that advisors look to investors in their savings years. Investors aged between 30 and 50 tend to be more focused on accumulating assets rather than career building, or wealth preservation. Of those, high earners with incomes still rising are a good bet.

Two other identifying characteristics of the emerging affluent are a demonstrated ability to save money, and a graduate-level education.

The study points out that investment in education often crowds out other investments. Investors with graduate-level education often appear “dirt-poor” in their early 30s, but by the time they reach 50, financial providers will spend big money to win such lucrative clients.

The emerging affluent mirror the affluent in their investment beliefs and embody characteristics closer to the affluent than those their own age. It also warns that the emerging affluent market are extremely tech savvy and won’t tolerate clumsy cross-channel communication. Seamless use of cross channel communication will be key as the new generation of affluent and high net worth clients will expect, but won’t necessarily think about the technology unless the technology is bad.

The study also warns of the shift of power likely to occur among financial providers. According to the research, the young affluent use the Internet the most, and are 25% less likely to use full-service brokers. The authors say they do not expect to see a dramatic shift to full-service even as assets grow. They say this will likely weaken the traditional hold that full-service firms have on the elite group.

As clients make better use of available technology and become adept at independent information gathering, providing personalized information and “nurturing a fulfilling relationship with clients” will become key.

“It’s lucky for advisors that the human desire for relationships doesn’t change,” say the authors. “In other words, all of the future advisors studying economics had better watch out for their buddies in the psych department.”