The Truth About Millennials
Young professionals are an often-underestimated group when it comes to investing and retirement planning.
This age group of so-called Millennials are constantly depicted as a generation that is lazy, frivolous, and overburdened by debt.
Is it true? Not at all!
Millennial Americans are saving their money at a higher rate than their Baby Boomer counterparts at a similar age. Research from the Transamerica Center for Retirement Studies shows that nearly three-quarters of Millennials are saving for retirement at an earlier age than past generations. Half are putting away 6% of their income or more—a statistic that makes Millennials the best cohort of savers since the Great Depression, despite having to carry record high levels of student loan debt. Those who participate in their workplace retirement plans are saving 7% a year, on average.
Alas, Millennials are not doing an equally good job of investing.
The research suggests that many younger Americans are frightened and confused by the topic of investing, and keep their money in their bank accounts. That’s a problem, since low interest rates essentially drop the return on investment to 0% a year. In the Transamerica survey, 25% of Millennial respondents said they weren’t sure how their retirement savings were invested, and, when they were promoted to check, they reported higher allocations to bonds, money market funds, and other low-return investments than their Baby Boomer or Generation X counterparts.
The good news is, there are a variety of prescriptions for the problem of being under-invested, which is much more easily fixed than bad savings habits. Young professionals just starting their careers often feel like they can’t afford to work with a financial advisor, don’t make enough money to invest, or perhaps don’t see the value in saving for retirement yet.
Where these concerns are valid, they are simply not true.
Young professionals have a distinct advantage when it comes to financial planning: they get the jump-start on building a solid financial future through good money management skills, budgeting savvy, and investment knowledge. The more you know, the more you grow!
The Young Professionals Package
At Financial Strategies Group, we understand that Millennials are faced with issues that have changed their perspective on saving, investing, and retirement. The Silver Tsunami of Baby Boomers is set to wash away any hope for Social Security, while education and living costs continue to rise, and debt is pushing off home ownership and family plans.
Our Team has developed a Young Professionals Package that is tailored to the new investor. Financial well-being comes from successfully applying the principles behind insurance, investing, retirement, estate planning, income distribution, and wealth preservation strategies. It also comes from hard work, diligence, and smart planning. And you’re never too young to start!
Click here to download our Young Professionals Program Guide
Young Professionals Night with Financial Strategies Group
We recently hosted a Young Professionals Night in Fort Lauderdale, and it was a great success! We served drinks, lite bites, and played investment trivia. Our goal with these events (more coming soon) is to help people develop a comfort level with saving and investing. It’s OK to start from nothing, just have an open mind to learning something new. Together with our team, we’ll help you get started.
Do you have questions about saving, investing, and money management as a young professional?
Call Financial Strategies Group at 954-888-4680 and set up a time to talk.
You’ve got this!