Rory O’Hara, CFP®, CRPC®, is the founder and senior managing partner at Ausperity Private Wealth.
For years, a tired narrative has persisted: Millennials are lazy, entitled and financially irresponsible. The reality couldn’t be more different. Millennials are not only reshaping industries, they are rewriting the rules of wealth creation.
Yet far too many people view this generation as drowning in debt, wasting money on silly purchases and living in their parents’ basements. Unfortunately, this perception persists among many of my fellow financial advisors nationwide.
That’s a huge mistake. This group, a key driving force in the success of today’s economy, should not be ignored, let alone scoffed at based on a series of cartoonish delusions and misplaced presumptions.
An Entrepreneurial Generation
So, where do some of these views of millennials come from?
For starters, it’s important to point out that the generation wasn’t dealt the best hand. Many millennials came of age during the financial crisis, which sapped their lifetime earning power, thanks to older workers putting off retirement, which left fewer available jobs.
Also, it’s impossible to ignore student loan obligations and rising living costs, issues that are only exasperated by getting a late professional start. Even so, countless millennials have faced those challenges head-on and emerged triumphant, establishing themselves as one of the most entrepreneurial and adaptive generations in history.
Consider that a growing number of millennials are starting small businesses in the wake of the pandemic, which is consistent with findings suggesting that the generation wants to pursue entrepreneurialism. And that is not all.
In corporate America, millennials are increasingly rising through the ranks, assuming C-suite-level jobs every day. As part of that trend, they sometimes negotiate compensation packages that include stock options, restricted stock units and other somewhat opaque pay structures.
Millennials Have Money—Advisors Are Just Ignoring It
Despite the above, financial advisors continue to focus on baby boomers, wrongly assuming millennials lack investible assets. The truth is that millennials have plenty of money. In fact, millennials have nearly $16 trillion in wealth and are set to inherit another $72 trillion by 2045 as part of the Great Wealth Transfer.
Even so, estimates suggest that less than 25% of millennials (caution: study is behind a paywall) work with financial professionals. A nice way of looking at this is that this is an enormous missed opportunity for the financial planning industry. Another less charitable way of looking at it? It’s borderline shameful.
That’s because surveys also reveal that nearly 65% of millennial and Gen Z investors believe that a financial advisor is important to achieve financial success, compared to just 56% of baby boomers who said the same. The only way to explain the disconnect between these numbers (i.e., millennials who want to work with a financial advisor and those who actually do) is that my profession has ignored them.
What High-Income Millennials Are Really Thinking About
Unlike previous generations, millennials don’t trust that Social Security will be there when they retire, based on my interactions with them. They’re laser-focused on building wealth independently. Still, they have critical questions:
• Should I prioritize maxing out my 401(k), a Roth IRA or investing in emerging alternative assets like private equity?
• How should I structure my stock options and restricted stock units?
• Is it smarter to pay my mortgage aggressively or invest that capital elsewhere?
• What’s the best way to reduce taxes on my growing income?
They need a trusted advisor who understands their challenges—someone who doesn’t just push a one-size-fits-all retirement plan but helps them optimize their wealth strategy in real time.
What Millennials Want
Winning over millennials requires more than just a slick app or a trendy social media presence. The millennials I serve want a strategic partner—a wealth advisor who understands their ambition, financial complexity and drive for independence.
Indeed, based on my experience, they most want a thoughtful confidant. They don’t need general advice. Instead, they want to work with someone who understands their ambitions, challenges and priorities.
The best advisors will invest as much time into building those sorts of relationships as they do on other important offerings like crafting individualized portfolio strategies and delivering cutting-edge tech tools.
The Now Generation
It’s time for financial advisors to rethink their approach. Millennials aren’t just the future—they’re the now. Advisors who adapt their services to meet millennial needs will find a highly loyal and highly lucrative client base. Those who ignore this generation risk missing one of our time’s most significant wealth-building opportunities.
The message to millennials is clear: Don’t settle. Find an advisor who listens, understands your goals and offers solutions that work with your vision for the future. Whether seeking to save for retirement, buy a house or sort out a complex compensation package, having the right advisor can help get you there.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
