Financial Planner
Banking / Financial

Millennials Find Value in a Financial Plan

This cohort desires technology, but also the human touch.

While millennials are well-known for being tech-savvy and digital, their financial planning habits reveal a generation that wants both digital and human experiences to achieve financial confidence. Whether it’s paying off student loans, starting a business, or saving for retirement, millennials are expressing interest in working with a professional to meet their financial goals.

Online planning tools and other digital platforms can assist with financial planning, but it’s not the end all be all. Taking advantage of the resources available via smartphones and the internet is a strong first step to reach millennials – but the tech-savvy generation is also craving a hands-on approach with a financial advisor to develop a financial plan. In fact, millennials in the Northeast say they prefer learning about financial strategies via face-to-face meetings with an advisor more so than others across the nation.

Millennials also understand the value of developing a plan and sticking to it. A recent study by Guardian found that nearly 90 percent of millennials across the US say having a detailed financial plan would improve their confidence in achieving their financial goals. In fact, the generation says that having a detailed financial plan is equally as important to them as getting a bonus at work.

By working with an advisor, there are some key considerations millennials can explore to get their financial planning on track.

Millennials value liquidity and access to their money. Many have an entrepreneurial mindset and have goals of opening a business or investing in real estate. These initiatives require access to money – something that 401(k)s and IRAs don’t efficiently provide. A strategy of simply putting as much money as possible in qualified accounts isn’t always as attractive to them, and they need the guidance to make the right moves for their future.

Millennials often prioritize protection over saving and investing. Yet, one of the best ways to accommodate both strategies is to build a plan that prioritizes growth through investing, while also prioritizing protection through insurance products. A financial advisor can help create a plan that clearly states an individual’s goals and how to meet them, including methods for protection and growth.

Millennials have access to numerous digital financial resources at their fingertips to help jumpstart good financial planning habits. However, in addition to utilizing online tools to manage personal finance, having a detailed financial plan can increase millennials’ overall confidence in achieving their financial goals. The first step is to contact a local advisor and meet him or her to start the process and build a customized plan that can lead to a secure future.

About the Author: Joseph Fitzgerald, RICP®, is a registered representative and financial advisor with Park Avenue Securities, and a financial representative with Northeast Planning Corporation, an agency of The Guardian Life Insurance Company of America (Guardian) Northern New Jersey.


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