Millennials and HENRYs

Millennials (1981-1997)

We understand that Millennials like control and technology and are the largest generation. They have the highest number of billionaires and are digital do-it-yourselfers.  Here are some other statistics:

• 18% are planning to live to 100 or older.
• 25% aren’t sure how their retirement savings are invested.
• 80% are concerned Social Security won’t be there for them when they retire.
• 76% want more information and advice on how to achieve their goals.

Many millennials agonize over making decisions–such as choosing a financial advisor. We tend to think, consult, research, make comparison charts, Google, and ask more questions. However, we ignore the opportunity cost of our time. For instance, if you spend months thinking about whether to make a career change, you will have lost time that you could have spent actually building your new career. Instead, set a time limit for any decision you face and consider outsourcing to other professionals who are experts in their respective fields. You may enjoy running the numbers, but you need a financial accountability partner as a second pair of eyes to ensure you are on track in your wealth management journey. 

We Leverage Financial Technology

Sometimes we fool ourselves into thinking we can just “Google” our financial or investment questions. Unfortunately, it’s rarely that easy. Market conditions and economic forecasts change constantly. At Intelligent Investing, we listen to your individual circumstances, personal family history, investment experience, biases, and your goals.

Technology can beat humans at computations, but we also believe it is best to receive wisdom from a human who understands investor behavior and who leverages integrated technologies. If you are a fan of Mint.com or other online budgeting tools, then we think you’ll like how we’ve integrated your outside accounts and your investments in realtime. Your online portal can provide you with a real-time snapshot and feedback of your finances. You can get alerts to know if you are approaching your Starbuck’s budget goal. Intelligent Investing integrates a number of financial technologies to improve your investing behavior while providing you with an efficient experience.

Generation X (1965-1980)

We understand that Gen X wants the most education from their financial advisor. We have blogs, podcasts, and whitepapers we continually post. Consider joining our Intelligent Insight’s newsletters to get our latest thoughts. Here are some other statistics:

• 80% are saving for retirement in a company-sponsored plan.
• 14% are “very confident” they’ll be able to fully retire with a comfortable lifestyle.
• 83% are concerned Social Security won’t be there for them when they retire.

Although your generation is smaller, you are often credited for creating work-life balance. This is because you saw first hand how your hardworking parents became so burned out. You may have spent a lot of time alone as a child. This created an entrepreneurial spirit within you. In fact, Gen Xers make up a high percentage of startup founders. Even if you’re not starting your own businesses, Gen Xers prefer to work independently with minimal supervision. 

What is a HENRY?

HENRY is an acronym that stands for High Earner Not Rich Yet. HENRYs are young professionals who have a high salary but don’t have time to manage investments. You finished paying off student loans and are beginning to accumulate a nest egg. You may have a young family and are becoming an expert in your professional field. People make money many ways, but often don’t know what to do with it after they’ve made it. As you accumulate your wealth, you doubt whether you are maximizing your investment portfolio, or perhaps you aren’t sure how it ties to your financial goals. You may struggle with knowing who to turn to for unbiased and trustworthy help.

How we work with HENRYs

Sometimes young professionals partner with an inexperienced or wrong advisor. Perhaps you use a buddy you went to school with who took a 40 hour class on “financial planning” when in reality, your former roommate just learned how to sell a certain financial product. Be sure to check his or her credentials.

Because we are a fee-only independent fiduciary firm, we must do what is best for you at all times and strive to put you into a portfolio that matches your willingness to take on risk. Intelligent Investing does not sell any financial products such as insurance or annuities. We want your portfolio to grow–since our management fee is tied directly to the investments we manage.  As your fiduciary partner, we provide a human relationship and accountability.

We’d Love to Work with You

We work with HENRYs who have at least $100,000 in investable assets. We understand your time is valuable and trusted delegation is rare. You may want to consider an accountability partner to monitor your investments and risk. Or, you may feel it is time to delegate your investment decisions, so you can spend more time with family or doing the things you love. Either way, we’d love to serve you and your family.

Source: “Retirement Readiness of Three Unique Generations,” Transamerica Center for Retirement Studies, 2017.