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There is no right age to start organizing your finances. Many people might not take young professionals looking for better financial strategies seriously. Fortunately, there is a rising market of wealth managers that identified the potential of young generations.
If you are part of the young investors looking for help with financial planning in $ $ , this article might help you. It brings tips on what to take into consideration when choosing a wealth manager. On top of that, this article will show you great financial advisor firms in $ $ that are specialized in giving financial advice to the young workforce.
Wealth managers are just one category of financial advisors who work with a broader approach to your financial life. For example, while some financial advisors only give investment advice, wealth managers also offer legal and state planning, accounting, tax services, and retirement planning. Many wealth managers can provide services for any facet of the financial field. However, some specialize in particular fields. This way, wealth managers work with a broader approach to a client’s financial life. That is done through holistic financial planning and investing advice.
This very comprehensive service is usually marketed to high-net-worth individuals since the minimum asset requirement to open an account with a wealth manager can be quite high. This value can go from $250,000 to over $10 million, depending on the firm and professional you choose to hire around .
Both Millennials and Gen Zers believe they live in a more difficult economic scenario than previous generations. In fact, most professionals that are part of these generations don’t believe that the current economic system values them and will provide them good conditions to build a safe financial future.
Both generations lived economic crisis and salary stagnation. Even though they look at it in slightly different ways, with Gen Zers being more realistic while many Millennials stopped trusting the whole system, both generations share a feeling of financial uncertainty.
Of course, many millennials and gen zers managed to build wealth. But even those differentiate from previous generations:
This way, it became clear that the younger professionals that managed to build a considerable wealth need a different approach to their needs. This gave birth to a young wealth management market that is constantly on the rise and bringing different approaches to financial planning.
Many people don’t expect professionals to be looking for wealth managers at a young age. But the truth is that younger generations are not only looking for financial assistance, but they value it quite a lot. This is because younger generations believe their financial challenges to be greater, and more complex, than previous generations. As a result, they are more likely to rely less on the market potential and security. Millennials, for instance, don’t trust traditional corporations as much. Gen Zers, on the other side, don’t rely on fully automated platforms. Instead, they look for hybrid approaches that combine the algorithms of robo-advisors with the real-world guidance of a financial advisor.
Ultimately, the type of financial advisor you need depends on your needs and personal situation. In general, the financial holistic approach offered by wealth managers benefits individuals with a high net worth. That is because the highly tailored services of wealth advisors comprise most, if not all, financial aspects that an HNWI (High Net Worth Individual) may need for their personal and professional life. Also, the minimum asset requirement to hire a wealth manager can be an impediment for some.
With the true instability of the world economy, more frequent financial crisis, and inflation, it is a smart choice to look for wealth managers at a young age. Many younger professionals are building their wealth and not properly planning what to do with it. A larger share of young professionals works in less regulated markets that don't offer retirement plans if compared to older generations. Thus, it is a wise decision to start organizing their finances as soon as possible. This will enable them to create a more financially stable future and optimize their earnings.
If you are still young but are ready to organize your financial life and future with a wealth manager, there are some tips to take into consideration when choosing the ideal expert for you in .
Identifying what you want from the financial advisors is a great first step towards finding the best match. For example, if you need assistance with taxes, search for an advisor specialized in tax work in $, including the appropriate qualifications. Or, if you are only looking for investment management, perhaps the best fit will be a low-cost service such as a Robo-advisor.
This may sound silly, but it can be a vital factor. It is hard to make a financial advisor from a completely different generation understand the needs and struggles you are going through as a millennial. There are exceptions for this, but working with a financial advisor with a top 10-year age gap from you will probably be a better fit. They will know what you are going through not only on a professional but also on a personal level because they might have gone through similar circumstances.
You don’t need to be friends with your financial advisor, but you do need to trust them at least a bit for it to work. If you are accepting financial guidance from this professional, it is important to have some personality fit. This will not only improve your trust in your financial advisor but make the whole process more pleasant.
Some financial advisors owe their clients a fiduciary obligation, which means they must serve their client's best interests rather than their own. The most recommended is to work with a licensed, registered fiduciary. In addition, it is ideal that the advisor works on a fee-only basis. This means the professional will only be paid directly by you rather than by commissions for selling specific investments or insurance policies, resulting in more unbiased advice.
Everyone is busy nowadays. Younger generations, such as Gen Zers and Millennials, for instance, are reported to be more likely than other generations to have more than one job. This can make it hard to schedule meetings with your financial advisor. A solution for this issue is video calls, but the adoption of this method is quite slow at larger finance companies. Finding a financial advisor that can fit your busy lifestyle is vital because it can be hard to keep your strategies in place without convenience.
Many consultants use popular titles - including the “financial adviser” itself – without any specific qualifications. So, don’t assume someone has training, credentials, or registration just because they use an official-sounding title. Be careful and do your own due diligence before trusting a professional. Look for titles such as “Certified Financial Planners” (CFPs) or “Chartered Financial Consultants” (ChFCs). These require rigorous training and minimum experience to be achieved.
Regardless of what title, designation, certification, or licenses financial advisors claim to have, it’s up to check their qualifications and background.
You know the main aspects you should take into consideration when looking for a financial advisor as a young professional. Now it’s time to analyze and compare the options around you. In , there are many firms that work with assisting younger clients with their financial planning. When choosing between these options, it is important to compare them in every aspect you can. That is the best way to know you made the right decision. And don't forget to do your own due diligence.
With the advancements of video call services offered by these professionals, you can also explore financial advisors outside of or even , far from where you live. But if you want an expert based near you, here are the best financial advisors for the youth in :
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