With $30 trillion expected to transfer to Gen X and Gen Y frombaby boomers through inheritances, the signs are not good thatcredit unions will retain this wealth unless they actively startengaging these two influential groups.

That was one of the insights shared at CUNA Brokerage Service Inc.'s FOCUS Conference Monday. CBSI isthe broker-dealer affiliate of CUNA Mutual Group in Madison,Wis.

David Polet, CUNA Mutual's Voice of Customer director, and GaryWeuve, CBSI's Center for Advisor Excellence vice president andauthor of “Close More Sales in Financial Institutions: 12 Keys toSuccess,” told a FOCUS adviser workshop session that credit unionshave been steadily losing younger members and as a result, thepipeline for their future personal investments is getting smallerwhile the competition for their money is greater.

“Research shows 71% of 18-24 year olds have little to noknowledge of credit unions,” Polet said, adding, “and that's aproblem because this generation will be critically important to thefuture of your credit union in the years to come.”

Thirty-trillion dollars will be transferred to Gen X and Gen Y from baby boomers during the next 30 to 40 years, making it an evenlarger wealth transfer than prior generations, according toAccenture's “The 'Great' Wealth Transfer” 2012 white paper, CBSIcited.

“Seize this opportunity. Encourage current clients to bringtheir kids into the discussion regarding inheritance,” Weuvesuggested. “This will help create awareness, and establish anopportunity to become the advisor of choice when the wealthtransfer is ready to occur.”

Polet told attendees that despite common myths, “Gen Y is not acollection of lazy, narcissistic, self-promoting whiners; instead,they are hard-working, creative, collaborative people with a highawareness, and interest in engaging in financial management.”

The impacts of the dotcom bubble and great recession havescarred them, and made them much more skittish about investing, henoted.

“However, Gen Y and Gen X are highly open to seeking advice, andare much more likely to get that from their credit union, orprimary financial institution, than older credit union members,”Polet said.

Seventy-eight percent of Gen X and Gen Y who worked with anadviser contributed to a retirement plan, as opposed to only43% who did not work with an adviser, according to an April 18,2013 article, “LIMRA: Top 5 Ways Gen X and Y Consumers CanImprove Their Chances for a Secure Retirement,” CBSIcited.