Millennials are changing the game.
According to the 2015 Census Bureau Report , Millennials, defined as those born between 1981 and 2004, have surpassed the Baby Boomers. And, we’re already starting to see the impact Millennials are having on business.
- Old, big retailers are struggling…just take a look at Macy’s, Nordstrom, and The Gap, Meanwhile, Amazon has become a threat to almost every retailer. Millennials prefer the convenience of shopping from their iPhones; with free shipping and next day delivery, who needs to deal with the hassle of the mall?
- Print media has been slowing for years, while digital media’s presence has grown. Although Twitter can’t seem to figure out how to monetize its business (making it an extremely frustrating stock to own), it’s the go-to news source for Millennials. Don’t believe me? When watching the news, count the number of times Twitter is mentioned. The power of Twitter can be summed up in three simple words: Delete.Your.Account. Presidential candidates are now using social media to argue with each other…are you kidding me?
- Finally, the delivery of financial advice and investment opportunities is changing to meet the needs of Millennials. A new industry has been born,”Fintech”, whose companies have focused their sights on Millennials because the traditional financial planning world has neglected them. The traditional model is based off commissions and/or management fees, which means advisors look for clients with significant assets, leaving many Millennials on the outside looking in. Cue companies like Wealthfront and Betterment (referred to as robo-advisors) who provide low cost investment management and generic financial planning.
Although Fintech has provided incredible resources for Millennials (and others lacking the assets to attract financial advisors), it lacks the human touch many seek when it comes to financial advice. As a financial advisor, I can attest that a large part of my relationship with my clients extends beyond crunching numbers and asset allocation. There is a lot of psychology involved with finance, and unfortunately, robo-advisors lack the ability to address human behavior. Realizing robo-advisors are better than nothing, but that Millennials deserve more, a movement amongst financial advisors has begun. It should not come as a surprise that many of these are Millennials themselves. And yet, there is another change as of the result of Millennials.
I’m proud to be a part of this movement bringing financial planning to Millennials. When I started my firm, I knew I wanted to work with people my age, in addition to my Baby Boomer clients. At my previous firms this wasn’t an option, but since I was writing the rules, Millennials would no longer be turned away–I created WealthFusion™ with my peers in mind. For a simple, flat monthly fee WealthFusion™ not only provides investment management, but also a financial planning relationship focusing on the issues important to Millennials–like debt payment, retirement savings, college funding, insurance planning, asset allocation, and estate planning. While robo-advisors are better than nothing, there is a growing number of advisors wanting to help Millennials with their financial planning. Check out the XY Planning Network to see how a group of financial advisors is focused on helping Millennials.
If you are interested in learning more about WealthFusion™, click here.
Disclaimer: Nothing on this blog should be considered advice, or recommendations. If you have questions pertaining your individual situation you should consult your financial advisor. For all of the disclaimers, please see my disclaimers page.
This post is for informational purposes and not intended to be a solicitation.