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  • [10 Things] to Look for in a Millennial Financial Advisor

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    Financial Planning For Millennials in Arizona
    The catchphrase “Not Your Father’s Financial Advisor” has become a pop culture reference to millennials wanting to find an advisor that will cater to their modern interests. But as the most seasoned financial advisors get close to retirement, it’s becoming more challenging to attract millennials to invest in a financial plan. Retirement planning for millennials seems to be a far-fetched idea to many. Retirement, as tied to old age, is something the younger generation isn’t apt to wrap their heads with.

    This mindset is where the problem stems. The majority of the millennial generation doesn’t think about retirement until old age sets in. According to the National Institute on Retirement Security, about 66% of millennials, or those in the age of 21-32, don’t have anything saved for their retirement years. Retirement seems to be a down-the-goal priority with many of them still paying for student loans, bills, and starting a family.

    Although it’s true that there are still many years left to save, what millennials are missing is the compounding effect of their savings. So as early as now, it’s advisable to seek a financial adviser that can help you craft a future secured with your money.

    1. Traditional vs. “Robo” advisor

    On this technology-driven era, Robo advisors are appealing to millennials. These are computer software programmed to guide users toward wealth management. Since this method is passive and the users have full control of its functions, the costs and effort required are lower. However, Robo advisors have its drawbacks. It’s only set to handle wealth management and to invest assets. There’s no way it can take financial goals into consideration, unlike what traditional and professional advisors do.

    2. Advisor reputation

    If there’s one thing millennials should prioritize, it’s looking for a reputable financial advisor. It’s important to check the background and track record of the prospective advisor before signing a contract. Always verify the credentials they provide. In case there’s no way to do this, word-of-mouth would be a reliable alternative. Friends and older acquaintances who have retirement plans are the best people to ask for references. Public site reviews are also helpful for retirement planning for millennials.

    3. Accessibility and flexibility

    Living in the era of the 2008 financial crisis and the Great Recession, the younger generation is naturally skeptic about financial planning for millennials in Arizona. This means that advisors who can’t handle questions are pointless to deal with. Millennials who want to thrive with traditional options should look for an advisor that can communicate well and respond when needed.

    The millennial age is also the phase where many are busy attending to children or working. An advisor that offers flexibility in their hours will be excellent.

    4. Professional certification

    Financial advisors have varying credentials. There are also scammers who will try to trick you into investing and then milk your funds in the end. Be familiar with the type of licensure and education advisors have and what’s the highest level they should attain to suit a type of investment. As a general rule, financial advisors should pass the requirements imposed by the Certified Financial Planner Board of Standards.

    Retirement Planning For Millennials

    5. Services

    An advisor with a diverse list of services will be beneficial for millennials. It allows variety in the investment aspect and protection on the funds as well. Take note that financial advisors are only allowed to offer a service they are certified for. To prevent overcomplicating things, look for an advisor well-versed with the common financial issues that the millennials face.

    6. A defined path

    Investing, in its own sense, is highly technical. Millennials who barely have experience with retirement plans would find the idea even murky. Financial advisors that can provide clarity to investment-related questions are the best to deal with. Most young investors would be encouraged to stick to the investment if all the cards are laid on the table. Besides, a defined path is a sign that an investment is headed to growth.

    7. Not a sales-based approach

    The main problem of financial planning for millennials in Arizona is the very sales approach. Millennials simply don’t want that. A retirement fund discussion centered on numbers is totally fine, but it shouldn’t be too boring. Find a financial advisor that can be personal with financial goals and potential limits. Commissions and fees being mentioned frequently will become uncomfortable in the long run. Millennial's don’t want another warm body, they want someone who cares.

    8. Experience with young clients

    The needs and investment requirements of older individuals are way different from that of millennials. Financial advisors with prior experience with millennial clients are better since they have a reference in handling investments on a longer duration.

    9. Shared values

    Millennials always want to be valued, no matter how big or meager their investments are. Shared values also translate to reliability and confidence on the part of the financial advisor. If the client and the advisor can’t meet halfway, it’s unlikely that the investment will prosper, let alone stand the test of market fluctuations. Shared values also make a financial advisor easy to deal with. They don’t necessarily have to be a working mom or dad just like their clients. What matters is they work toward the goal set by their young investors.

    10. Transparency and fair fees

    No one wants a deceitful advisor, especially when it comes to retirement planning for millennials. Proper disclosure is important so make sure to look for an advisor that’s been trusted and proven to work without shady undertakings. Millennials already had enough of the financial breakdown this country faced in the past. Having an advisor that will steal instead of protect is a big smack on investor confidence.

    Lastly, look for an advisor that offers fair fees. Some professionals will likely charge higher, but it shouldn’t be as high as a banker’s bonus. Financial planning for millennials in Arizona should be within the means of a young investor.

    Like what’s said earlier, investing on a retirement plan is equally important for millennials and soon-to-be retirees. With the compounding effect within the hands of the younger generation, there’s no best time to invest than now.
    Curtis Ray
    Oct 04, 2018
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