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The Kids Are All Right – Planning for the Next Generation
The world has been talking about Millennials for quite a while now. They are 71 million strong, and they represent 35% of the workforce, but they are also behind previous generations when it comes to wealth accumulation. Researchers blame a host of factors, but two reasons are most commonly cited: The Great Recession occurred when Millennials were just entering the workforce, putting them behind the eight ball at the beginning of their careers. Furthermore, the Millennial generation is marrying and starting families later than previous generations. Family creation is a milepost in saving and investing as couples buy homes and save for college and retirement. Thankfully, Millennials are projected to work and live longer than previous generations, so they have time to get back on track financially.
While much is written about the plight of the Millennial – very little is being done to advise them financially. Summit plans to change that. Many wealth management firms tend to focus on retirement planning and the challenge of making sure one’s money lasts through life expectancy. This service model typically targets clients in the 40-75 age range, in their peak earning years, who have accumulated significant assets that need shepherding. While we are firmly dedicated to this work, we also see a desperate need to provide guidance to individuals and young families who still have 30+ years to go until retirement. A study done by PricewaterhouseCoopers found that when tested on basic financial concepts, only 24% of Millennials demonstrated basic financial knowledge.