Financial Planning for Millennials
Affordable Financial Planning for Millennials
A recent study was done by a major financial institution on the millennial generation and their money. One of the major revelations was that approximately eighty percent of these individuals that participated in the survey, stated that they learned how to survive and save after seeing how the great recession impacted their elders. Financial planning for millennials didn’t appear to be that important.
However, almost half admitted that their greatest financial concern was debt, and because of the high debt, they were living paycheck to paycheck.
This same group stated that they were only able to save about 1 to 5 percent of their gross income, far below what they knew they should be saving for retirement. Most agreed that financial planning for millennials could benefit.
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With all of the above issues, this group is very aware that they need to receive financial planning for millennials, but over one half of this group doesn’t believe they can afford it. They feel that it’s simply a matter of not having enough money to allocate for this area.
Years ago, that may have been true, but today, it’s not too difficult to find a financial planner with different pricing arrangements that help to make it more affordable. Some planners will work on a monthly retainer basis that spreads their fee out over a period of time.
Reasons for the changes in the financial planning profession
Financial advisers are aware that millennials aren’t receiving the type of financial advice they need even though many of them do ask the right questions. Some planners are switching from promoting commissioned type investments that millennials don’t need or want. Many financial planners prefer to serve a much broader client base and are willing to take on clients with smaller investment portfolios that, over time, will grow. These same advisers emphasize the strengths of financial planning for millennials instead of just giving investment advice.
How to get more affordable financial advice from a financial planner
Suppose you found a local firm that offered financial planning for millennials and they offered you this deal. For the price of what you currently pay for your monthly cell phone, he/she would work with you with financial planning services. Would you accept it?
The XY Planning Network is a new group that was organized to do just that. They offer basic financial planning for millennials services on a fee only basis that is paid with a low monthly retainer. This group of CFP’s is dedicated to assisting Gen X & Y clients handle their money through good financial planning. There are various reasons why millennials prefer to work with this group. The primary one is that they are working with a personal financial advisor within their age group and generation, and someone that can relate to their concerns with similar values. They also enjoy the fact that there is much more flexibility. Meetings can be scheduled as needed after work or even on Saturday.
Financial planning for millennials isn’t just about planning for retirement. It covers a very broad range of issues from creating a budget to working with student loans that can be quite high. The average student loan is now in the area of 33,000.00. Some other services include savings; taxes; insurance; wills; as well as various company benefits.
It’s not too unusual to find millennials that have a sizable emergency fund, even after repaying thousands of dollars in debt. Many, as well, enjoy six figure incomes. They have been through a couple of stock market declines, and have seen their parents work through it successfully. Millennials basically are trying to make wiser choices with their money and are willing to make sacrifices to accomplish their goals. So please don’t think that you aren’t able to afford financial planning for millennials, there may be a firm around the corner.
Gust Lenglet is the CEO of HBS Financial Group, Ltd., an accounting & tax preparation firm in Maryland. He has more than 25 years of experience in the banking and financial industry. Gust started his career as a loan officer at a major national bank, and then moved on to become controller of a major law firm. In recent years, he has written many financial articles that have been published on Ezine Articles and many websites.