Building Wealth with Millennials
Building Wealth with Millennials is very challenging, especially compared to previous generations. Millennials are caught between the financial remnants of the Baby Boomer (the “worst savers” in history), and the Centennial generation (those who believe working a lifetime for someone is insane). The technology revolution puts Millennials in a unique position because “overnight success” is no longer just a cliché. There are opportunities for financial success in places and industries that did not exist for Baby Boomers. Many Millennials are creating their own paths in life and seeking to be financially independent at a very young age. Financial planning and guidance is more important now than it has ever been. Considering the slow demise of pensions, the use of sound financial strategies and planning will be the deciding factor among Millennials who live well, and those who do not. “In the last two years, Millennials have become the largest generation in the U.S. workforce” (The Center for Generational Kinetics, 2016). Millennials are the fastest growing generation of U.S. consumers in the marketplace, and are expected to bring the greatest lifetime value to the American economy.
Millennials have different attitudes toward employment, money, lifestyle and family. Therefore the approach to building wealth with Millennials must fit their expectations. A solid wealth accumulation plan for Millennials should consist of:
Solid budgeting – the key to success for any financial plan.
Aggressive Investment Strategies – the proper asset mix and risk profile.
Identifying and funding a realistic travel and entertainment budget.
Rainey day fund –a 12 month coverage of his expenses (more than the traditional recommendation of 6 months).
Entrepreneurial and financial coaching for those who seek to be self-employed.
Regular financial consultations – to ensure plans are always in line with his current life events.
Millennials, look out for Generation Z! This new group of people is making big waves in every way possible. Generation Z is conquering parenting, education, employment, entrepreneurship, sales, marketing, politics, and religion. They are expected to breed more millionaires than any other generation thus far. Don’t be left out!
See this spread and more in the Summer 2017 issue of Nura Magazine.
Advanced Wealth and Retirement Planning Concepts, LLC
Generational Breakdown: Info About All of the Generations (2016). The Center for Generational Kinetics. Retrieved from: http://genhq.com/faq-info-about-generations/