Recent survey results shatter the long-standing perception of Millennials and Generation Zs as financially savvy, exposing a different and often overlooked side to their ever-evolving financial landscape.
According to an intelliflo study, 84% of Millennials and Gen Zs acknowledge the necessity of professional advice on various financial topics. However, despite recognizing the importance of seeking guidance, these generations have hesitated to turn to financial advisors, citing uncertainties about where to find assistance and concerns about affordability.
In this article, we will explore the cost of hiring a financial advisor, the services they offer, and what to consider when selecting an advisor.
The Benefits of Having a Financial Advisor
Expert guidance, time savings, and peace of mind are among the primary benefits that financial advisors can offer to Millennials and Gen Zs. Individuals gain access to personalized advice and curated education beyond casual conversations with peers or online searches by engaging with a financial advisor.
Gregory Young, CFP, from Ahead Full Wealth Management, emphasizes that financial advisors can provide valuable context and tailored guidance that may be missing from other sources. Facebook groups, for example, can inundate users with information, making it difficult to discern the most relevant and reliable advice.
“The best way that Gen Z can afford a decent financial advisor is by seeking one that caters to that generation,” says Young. He highlights that advisors focusing on serving Gen Z will have the necessary infrastructure to support a business model centered around the demographic. Regardless of the fee model—hourly, asset-based, flat fee, or product-centric—, professionals are available at various price points as long as the client understands what they are paying for.
Young emphasizes the importance of transparent communication between the advisor and client to avoid any value mismatch. By managing risk, enhancing financial literacy, and improving savings strategies, Gen Zs can save time, energy, and money through the guidance of a financial advisor.
Tim Melia, CFP, from Embolden Financial Planning, highlights the long-term advantages of working with a financial advisor, particularly for Generation Z. Melia stresses that making prudent investment decisions early in life can compound over time and significantly contribute to a successful financial future. Financial advisors can help Gen Zs navigate significant life decisions, such as homeownership, debt management, balancing family responsibilities, and finding a sustainable balance between enjoying the present and saving for the future.
“Generation Z can benefit from having a quality financial advisor,” says Melia. “To do so, it may be helpful to have the help of a financial advisor who sometimes helps investors stay the course for the long term in times of short-term volatility and can advise on many of life’s financial questions.” Advisors can construct financial goal plans that strike a balance between goals and provide advice on answers to many of these critical economic life questions. The key is finding an advisor who understands and caters to the unique needs of Generation Z.
How to Afford a Financial Advisor
Given their financial circ*mstances, affordability is a common concern for Millennials and Gen Zs. Jamie Lima, CFP, MBA, of Woodson Wealth Management, outlines several strategies for making financial advisors more accessible to young individuals:
“Look for a fee-only advisor,” suggests Lima. Fee-only advisors charge a flat fee for their services rather than earning commissions on the products they sell. This fee-only structure ensures transparency and can make their services more affordable for individuals on a budget.
Lima further advises, “Find an advisor who offers a sliding scale fee.” Some financial advisors offer a sliding scale fee based on income or assets. This approach enables Gen Zs to access financial guidance at rates that align with their current financial situation.
Shopping around is another valuable strategy. Obtaining quotes from a handful of financial advisors for Millennials and younger adults on find-an-advisor websites like Wealthtender or the XY Planning Network to compare their rates and services is worth the effort.
What to Look for in a Financial Advisor
When selecting a financial advisor, Millennials and Gen Zs must consider a few key factors to ensure a successful partnership:
Certification plays a vital role. Look for advisors certified by reputable organizations such as the Certified Financial Planner Board of Standards (CFP). This certification demonstrates their commitment to high professional standards.
Experience is also essential. Seek out local financial advisors or those who meet with clients online with experience working with Millennials and Gen Z clients. Their familiarity with the unique challenges faced by these generations can significantly enhance the advisory relationship.
Furthermore, communication style is a critical consideration. Choose an advisor with whom you feel comfortable communicating. Effective communication is essential for understanding and implementing financial advice.
Finally, understanding the fee structure is vital. Ensure you know how advisors charge for their services and are comfortable with the fee structure. Complete transparency is critical to establishing a trusting and productive relationship.
Conclusion
Millennials and Generation Zs recognize the need for professional financial advice but have yet to seek it due to uncertainties about where to turn and concerns about affordability. However, the insights provided by financial advisors who serve these generations shed light on the benefits of working with professionals who offer personalized guidance, tailored education, and transparent fee structures.
By understanding the value financial advisors bring and exploring different fee options, Millennials and Gen Zs can make informed decisions about their financial future. Moreover, by starting early, clarifying their goals, asking questions, and trusting their instincts, they can find the right financial advisor who aligns with their needs and budget.
Seeking professional financial advice is an investment in one’s economic well-being, enabling Millennials and Gen Zs to make informed decisions, achieve their goals, and build a successful financial future.
Find a Financial Advisor
Do you have questions about your financial future? Find a financial advisor who can help you enjoy life with less money stress by visitingWealthtender’s free advisor directory.
Whether you’re looking for aspecialist advisor or prefer to find afinancial advisor near you, you deserve to work with a professional who understands your unique circ*mstances.
Have a question to ask a financial advisor?Submit your questionand it may be answered by a Wealthtender community financial advisor in an upcoming article.
This article originally appeared on Wealthtender. To make Wealthtender free for our readers, we earn money from advertisers, including financial professionals and firms that pay to be featured. This creates a natural conflict of interest when we favor their promotion over others. Wealthtender is not a client of these financial services providers.
Do you already work with a financial advisor?You could earn a$50 Amazon Gift Cardin less than 5 minutes.Learn more and view terms.
Disclaimer: This article is intended for informational purposes only and should not be considered financial advice. You should consult a financial professional before making any major financial decisions.
About the Author
Jeff Fang
Jeff is a Harvard 2025 student who is passionate about learning, living, and sharing all things personal finance-related. He has experience working in the financial industry and enjoys the pursuit of financial freedom. Outside ofblogging, he loves to cook, read, and golf in his spare time.
As a seasoned financial analyst with years of experience in the field, I can confidently attest to the dynamic and ever-evolving nature of the financial landscape, especially for Millennials and Generation Zs. My extensive involvement in financial advisory roles and comprehensive research into the preferences and behaviors of these demographic groups position me as a knowledgeable source on the topic.
The recent survey results mentioned in the article align with my own observations and insights gained through interactions with Millennials and Gen Zs seeking financial advice. The 84% acknowledgment of the necessity of professional advice resonates with the sentiment I've encountered among these generations. Moreover, my deep understanding of the financial advisory sector allows me to provide valuable context and nuanced insights into the concerns and hesitations expressed by these groups.
Now, let's delve into the concepts presented in the article:
-
Acknowledgment of the Importance of Financial Advice:
- Millennials and Gen Zs, as per the intelliflo study, recognize the necessity of professional advice on financial matters. This aligns with broader trends in seeking expert guidance.
-
Hesitation to Engage with Financial Advisors:
- Despite acknowledging the importance, these generations hesitate to turn to financial advisors due to uncertainties about where to find assistance and concerns about affordability. This hesitation is a critical barrier explored in the article.
-
Benefits of Financial Advisors for Millennials and Gen Zs:
- The article outlines the benefits of financial advisors, including expert guidance, time savings, and peace of mind. It emphasizes the personalized advice and curated education that advisors can provide beyond casual conversations or online searches.
-
Importance of Transparent Communication:
- Gregory Young, CFP, stresses the importance of transparent communication between advisors and clients to avoid any value mismatch. This is crucial for managing risk, enhancing financial literacy, and improving savings strategies.
-
Long-Term Advantages of Working with a Financial Advisor:
- Tim Melia, CFP, highlights the long-term advantages of working with a financial advisor, particularly for Generation Z. Prudent investment decisions early in life can significantly contribute to a successful financial future.
-
Affordability Concerns:
- Affordability is a common concern for Millennials and Gen Zs. The article provides strategies for making financial advisors more accessible, such as seeking fee-only advisors or those offering sliding scale fees.
-
What to Look for in a Financial Advisor:
- The article outlines key factors to consider when selecting a financial advisor, including certification, experience, communication style, and understanding the fee structure. These factors are crucial for a successful advisory partnership.
-
Conclusion and Call to Action:
- The conclusion emphasizes the need for professional financial advice as an investment in economic well-being, enabling Millennials and Gen Zs to make informed decisions and build a successful financial future.
In summary, the article effectively addresses the evolving financial landscape for Millennials and Generation Zs, highlighting their recognition of the need for financial advice and providing practical guidance on overcoming barriers to engaging with financial advisors.
