Are Millennials Rejecting Us? Let’s Make the Case for Why They Shouldn’t
Millennials! I must be honest in saying it’s not a great a feeling to hear you’re rejecting financial advisors like myself when it comes to your personal finance situation. According to this U.S. News article, our generation is much more focused on and pursuing DIY investing – rejecting the perceived traditional role financial advisors have played for our parents and grandparents.
I want all my fellow Millennial cohorts to know that at IEM, we’ve developed proven strategies and processes tailored to your financial situation – all the while offering you an investment experience that is holistic in nature (think – tax planning, student loan debt solutions, home purchase structures, etc.). While our operating principles and values remain the same over time, the great thing about The IEM Way (which we preach a lot about) is that it evolves, is customized, and individualized for YOU.
After reading the U.S. News article, a handful of topics came to mind that I think our generation should consider including:
Legacy Planning: Aside from focusing on your personal finances, legacy planning should be factored into your thinking as well. Quite often, and much more frequently as our parents age, the topic of legacy planning is something folks from our generation rarely consider and how it can impact our goals, aspirations, and success when retirement comes. Our legacies are what will live on after we are gone, so it's important to treat the details with care and to develop a plan to ensure that you leave the legacy you want and deserve.
Technology: As a financial advisor, I’m always fascinated by the vast amount of technological financial platforms at our disposal, and the immense contribution these platforms have made to our industry. Like any other Millennial, it’s so important for me to have quick, relevant, and timely information. It may not be the best thing in the world, but our generation’s mindset of instant gratification can have its pitfalls – especially with technology and understanding which information applies to us, is accurate, and is truly sound advice. That’s why I think it’s so critical to hire someone (like yours truly) to advise with a degree of caution before making any financial moves with a DIY investing mindset.
Awareness of Financial Rules, Limits, and Regulations: My last piece of advice is to have awareness regarding financial rules, limits, and regulations you may not know about without the guidance of a financial advisor. For instance, when it comes to Roth or IRA’s in general, there are facets to know about – including certain contribution limits and income phase outs that require much more attention to detail than most people realize. Another example is wash sales rules. This rule prohibits selling an investment for a loss and replacing it with the same or a "substantially identical" investment 30 days before or after the sale. If a wash sale applies to you, and you’re not following the rule correctly, just know the IRS may come knocking at your door (something we most definitely do not want).
So, Millennials, there’s something to be said for DIY investing and how empowering it can be for our generation. But, at the same time, making sure you have a cohesive and inclusive financial strategy with a financial advisor will only serve your financial future well. As always, I’m happy to have a free initial consultation with you if you’d like. My door is always open!
~ Presented by Charles Stewart