3 Reasons Why Young People Deserve to Work With a Financial Advisor

By Isabelle Clausen

We are proud to have Isabelle Clausen of Desert Wealth Management as one of the Fountain Hills Chamber of Commerce members. She is so talented at her job, and we wanted to share some of her insight into Wealth Management as we feel that it could benefit the members of our community. Thank you, Isabelle.

Young people ages 18 to 30 are quite under-served when it comes to obtaining guidance and advice from financial advisors. According to a recent NAPFA survey, one of the top reasons why young people feel as though they don’t qualify to speak with a financial advisor is because they believe that they don’t have enough money.

Furthermore, according to a recent VISE survey, 74% of young people don’t have a financial advisor due to fees and lack of trust.

Transparency and honesty are values that many young people care about, especially when it comes to financial professionals. But over 7 out of 10 young people don’t have a financial advisor simply because of fees and because they are unsure if they can trust an advisor with their money.

Young people are at a disadvantage when it comes to gaining guidance in their personal finances. However, the two top factors that have negatively affected a young people’s ability to prepare for retirement is a lack of resources and a lack of guidance (NAPFA study).

There’s a major issue here.

It is one of my greatest passions to offer objective, honest, and transparent financial advice to young people. However, young people first need to feel confident in the fact that they deserve financial advice.

We at Desert Wealth Management want to help the younger generation feel aligned with their personal and financial values, prepared to tackle their future financial obstacles and opportunities, and equipped with confidence to make smart financial decisions.

This article is written to encourage younger people to reach out to a financial advisor to gain financial guidance. Why? Because each and every person, regardless of their age, deserves object and transparent advice.

In this blog post, I will share 3 reasons why young people deserve to work with a financial advisor.

Reason #1: There is more to wealth than just how much money you have

While many young people believe that they don’t deserve to work with a financial advisor because they don’t make enough money, wealth is made up of more than just your salary and your bank account. Your intrinsic value as a person includes your intelligence, your skills, how you use your time, how you serve your friends and family, etc. Even if your 401k or ROTH IRA isn’t maxed out, the intrinsic value of your life is still priceless.

When you take care of your wealth, you can maximize your time, your relationships, and your satisfaction in life. Imagine working with a financial advisor who will give you advice on your spending habits, offer guidance in managing your retirement accounts, and help you save for your important next steps in life such as a buying a home or getting married. Think about how much less stress you will have on your shoulders and how you can use more of your energy to focus on your job, family, and purpose.

Working with a financial advisor can help you maximize all the various aspects of wealth in your life, ones with and without dollar amounts.

Reason #2: The younger generations will inherit a very large amount of money

According to a report by Cerulli Associates, over the next 25 years, $68 trillion will be passed to the next generation, many of which are Millennials and Generation X. Furthermore, Bank of America predicts that Generation Z will make more money than millennials by year 2031.

For reference, here are the age groups of each of the younger generations:

1. Generation X: 41 to 56 years old

2. Millennials: 35 to 40 Years old

3. Generation Z: 9 to 24 years old

Why am I sharing all of this? Because with this much wealth expected to be inherited and earned, young people need to know how to handle their dollars well.

Whether a young person is inheriting an IRA, being gifted a piece of land, or working in a high-paying tech company, a dollar squandered is a dollar lost. Wise money practices are not developed when there are large dollar amounts to work with. They are developed from a young age with discipline, commitment, and defined values.

Reason #3: People have worked too hard to lose their money

Parkinson’s Law teaches that the more time you give to a task, the longer it will take to complete the task. For example, if you give yourself three days to write and essay, you will use the full three days to do so. This law can be correlated with spending, as well.

As people earn more money over time, they tend to spend more. Why is this? I believe it’s because most people operate from a place of idealizing the future rather than living in the present.

When people have more money, they will naturally want to spend more money because they have the room to spend. For young people who are predicted to inherit and earn much money over the next several decades, this trend can be detrimental.

This is one of the most important reasons why young people deserve to work financial advisor: Young people and their predecessors work too hard for their money to lose their money.

A financial advisor can teach young people how to handle money with wisdom and strategy so that the money will continue on for many more generations. Various ways that a financial can help is by guiding young people in understanding their values, determining a spending and savings plan that aligns with these values, and educating young people about how to invest their money well. Wealth takes a lot of time and work to build. It’s important to not take this wealth for granted and to use it to the best of its ability.

Young people deserve to work with an objective, honest, and transparent financial advisor. If you are a young person who would like financial guidance, or if you know a young person who does, please reach out to us. We specialize in helping young people become aligned, prepared, and equipped to grow their financial wealth and health.

You can contact us here to schedule a free 45 minute meeting where we can get to know you better and share what service can help you worry less about tomorrow and focus more on today.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.