As many of you know, I’m a proud member of the XY Planning Network, a group of around 150 financial advisors who predominantly serve clients born after 1960 or so. I want to share with you a short article written by the founders of the Network, Alan Moore and Michael Kitces.
This was written in response to another advisor’s article, in which she concluded that millennials and Gen Xers don’t really need financial advice. The narrow-mindedness of this original article is exactly what True Life Financial Planning was founded to counteract. An industry of aging advisors with aging clients has started to pigeon-hole the rest of us into “investment management” and “retirement planner” roles that are only a fraction of what a true financial planner provides to clients.
I welcome your comments, as well as any questions you may have about either article. You’ll find the beginning of Alan and Michael’s article below, as well as a link to the full text over at Financial Advisor magazine.
A recent article published on Financial Advisor’s website concluded that millennials, as well as Gen Xers, simply don’t need an advisor because they aren’t going to get any value out of working with one.
Melody Juge, the self-acknowledged baby-boomer-centric advisor interviewed for the article, Millennials, Advisors Don’t Need Each Other, Planner Says, says: “Why do you want to have a 20- or 30-something man or woman who is full of life, creativity and forward thinking be focused on the end of their life? In most cases, savings should just be automated and out of mind.”
Yet what this statement really illustrates is not how young clients don’t need financial planning, but instead how the very label “financial planning” is being distorted. It’s being turned into a euphemism for investment management and retirement planning by a retirement-centric industry, as though accumulating a giant portfolio for retirement is the only financial problem anyone in our country ever faces.