Millenials Need Financial Planning

“The Millennial Generation”

However a name identifies an entire generation or population of people, there are several irrefutable truths associated with the term ‘millennial.’ These truths are validated by report after report, and statistic after statistic…and provide insight into why, how, when, where, and what millennials act, do, and say. Millennials are:

  • Highly educated
  • Incredibly tech oriented
  • Greatly adaptable
  • Extremely mobile

Millennials are also:

  • Transient; can stay, sleep, live anywhere
  • Anonymous and private
  • Global thinkers
  • Not highly loyal to one employer
  • Blind to color/race/religion
  • Conservative investors
  • Not pretentious; nice cars and jewelry don’t matter
  • Wired to answers from the Internet; know anything/everything
  • Group thinkers/value input such as Yelp and crowdsourcing
  • Do-it-yourselfers; seek advice but want to do it on their own

They also know that the likelihood of having the same benefits as their parents and grandparents are virtually gone. Millennials understand that they most likely will have:

  • No pension plan at their employer (outside of a government job)
  • Reduced Social Security benefits
  • To save for their own retirement
  • More complex investment decisions
  • More complex tax-codes
  • Multitudes of credit and debt options (mom and pop had only a few)
  • A renters mentality vs. owning outright
  • Fewer loyalty incentives from employers
  • College debt burdens
  • Lack of respect for their intellectual input at work

As these observations illustrate what the typical millennial might be going through, it is important to understand that they react to their emotional human needs just like every other generation. And these emotions are a primary factor in every aspect of their lives…from investing, to familial status, to their choice of recreation.

I frequently write and mention the words ‘feelings, emotions, and behavior’ when discussing the financial decision making process and how those human attributes can negatively affect someone’s good intentions. In fact, I have personally witnessed the negative effects that clients, prospects, and peers have made on their wealth while making emotional decisions on something that should have been deferred to a rationally agreed upon investment policy statement.

And whether a millennial has inherited $10,000,000 from a deceased parent, or has $200,000 in medical school debt, financial decisions based on their needs MUST be made. All too often, advice is sought from family and friends at social gatherings, where an uncle let’s you in on a ‘secret’ stock portfolio that is guaranteed to go up 100% over the next year. Other times, colleagues offer their two-cents over lunch break…telling you that you’re missing the boat by not doing something.

For these reasons, I believe that millennials are perfect candidates to explore the world of personal, advice-driven financial planning. Millennials do not want to be sold to; they want advice, and they want it to be specific to them. Millennials do not want to pay for something they can get for free; but, they will pay for something that has long-lasting value to them.  Armed with objective advice based on their needs, a millennial can figure out how to implement and accomplish their goals (remember, they are do-it-yourselfers).

This September, I am seeking referrals to millennials who are ready to discuss and develop a customized plan based on their specific financial goals. They may be strapped with college debt, looking to save for a down payment on a condo, or just figure out the best type of retirement vehicle in which to park their savings. A goals-oriented plan will help put them on a path to financial success.

Call or email us today to schedule a confidential meeting. First half-hour is FREE and there are no obligations.(818) 249-4984
Source: The 2016 Deloitte Millennial Survey