Category Archives: Poll

Viewing “Generation Now”

Chapter 11

Schwab funded a research study to find out what the next generation – “Generation Now” – believes and how it views the world. They wanted to understand how they view their future, determine their fears, attitudes and behaviors.

“Generation Now” is 30 – 45 years old. They have graduated from college, have a career and are making good money. But as they reached adulthood, the events they grew up with shaped them and their attitudes.

Easy prey

Most “Generation Now” investors have, at some point, had a negative experience with some type of financial advisor.

In these times, investors have been misled by advisors, or sold products with hidden fees, only to find out later what had actually happened.

The perceived lack of transparency and honesty in the broader field (of investment services) causes “Generation Now” to approach advisor relationship with caution and a degree of skepticism.

I would say for me to work with a financial advisor, I would want somebody who’s honest. You know, explains to me the fees up front… I just want something that’s real, and not cheesy, and not trying to hide anything, or hold anything back

This is the eleventh of 12 posts examining Generation Now.

Contact us for a complete copy of the report.

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Viewing “Generation Now”

Chapter 10

Schwab funded a research study to find out what the next generation – “Generation Now” – believes and how it views the world. They wanted to understand how they view their future, determine their fears, attitudes and behaviors.

“Generation Now” is 30 – 45 years old. They have graduated from college, have a career and are making good money. But as they reached adulthood, the events they grew up with shaped them and their attitudes.

Misaligned Interests

Though exceptions exist, many “Generation Now” Investors don’t believe their best interests are taken to heart when dealing with the Financial Professionals and Advisors in their life.

For these investors, there’s the perception that advisors are simply salesmen in suits, who steer clients into products that they’re incentivized to sell – either from corporate directives, or due to high commissions – rather than based on a client’s best interests or unique needs

Sometimes I feel like they have an agenda, and they’re really interested in how much you have to invest, and how much you have. And I just kind of feel like it’s really self serving sometimes. So if they really try to get to know me as a person, and come to my level, respect me and treat me as I want to be treated, with my best interests in mind, then maybe I would trust them a little bit more.

This is the tenth of 12 posts examining Generation Now.

Contact us for a complete copy of the report.

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Viewing “Generation Now”

Chapter 8

Schwab funded a research study to find out what the next generation – “Generation Now” – believes and how it views the world. They wanted to understand how they view their future, determine their fears, attitudes and behaviors.

“Generation Now” is 30 – 45 years old. They have graduated from college, have a career and are making good money. But as they reached adulthood, the events they grew up with shaped them and their attitudes.

Financial Freedom:

Above all, “Generation Now” Investors are seeking a lifestyle of financial freedom – the point where they have enough assets and security to no longer watch account balances, to know they have plenty to not just cover bills, but unknown liabilities, and are able to live life spontaneously, without so much focus on planning, budgeting and saving.

Financial freedom is the ability to do what you want, without relying on others. It is important because it elevates your soul to feel like anything is possible. And that really is what financial freedom is. It’s the ability to do anything you want and not have to rely on others, or ask others, and it feels like that is the beauty and freedom of living in a free society.

This is the eighth of 12 posts examining Generation Now.

Contact us for a complete copy of the report.

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Viewing “Generation Now”

Chapter 7

Schwab funded a research study to find out what the next generation – “Generation Now” – believes and how it views the world. They wanted to understand how they view their future, determine their fears, attitudes and behaviors.

“Generation Now” is 30 – 45 years old. They have graduated from college, have a career and are making good money. But as they reached adulthood, the events they grew up with shaped them and their attitudes.

Redefining Luxury and Success

Along with a return to timeless values, “Generation Now” Investors are confronting and reevaluating notions of luxury and outward displays of their financial success. For some, outright material acquisition still holds appeal, but for many, they’re content to redirect or delay what would have been spent on material items for experiences for themselves and family. Today’s luxuries are more likely to be things like once in a lifetime trips to far flung corners of the globe than flashy cars, or memberships in exclusive country clubs.

In fact, I would probably sell where I live now, in San Francisco, maybe purchase something small, so I have a home base. But I would love to travel to Central America, maybe do some hiking in South America. I would like to visit some countries in Asia: Vietnam, Cambodia, revisit Thailand.

This is the seventh of 12 posts examining Generation Now.

Contact us for a complete copy of the report.

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Viewing “Generation Now”

Chapter 6

Schwab funded a research study to find out what the next generation – “Generation Now” – believes and how it views the world. They wanted to understand how they view their future, determine their fears, attitudes and behaviors.

“Generation Now” is 30 – 45 years old. They have graduated from college, have a career and are making good money. But as they reached adulthood, the events they grew up with shaped them and their attitudes.

Return to timeless values:

Many “Generation Now” Investors, who previously placed greater emphasis on wealth and status, and found these aspects of their self-identity easily compromised by financial swings beyond their control, have been forced to reevaluate their priorities.

They’re focusing on creating meaningful experiences with family and friends – that typically don’t carry a high price tag – and drawing inspiration from their own parents, childhood and upbringing to find their way forward.

“Generation Now” may not yearn for the world of Ozzie and Harriett, but they long for many of the values of community that their parents and grandparents had. Some are downsizing from larger homes to smaller ones. Instead of meeting friends for dinner in expensive restaurants, they may prefer to get together at home for a dinner party.

A big life decision that my family and I made recently was to downsize a bit. We moved to west palm beach. And we did so from plantation to a three bedroom house from a five bedroom house, which was a pretty big decision for us. And we did that more or less so we could save more money, I should say, a lot more money. We needed to do that so we could get back in touch with what the more important things in life are right now. And that is family and saving for our future.

This is the sixth of 12 posts examining Generation Now.

Contact us for a complete copy of the report.

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What do younger investors want?

Schwab did a study about affluent investors aged 30 – 45.  The study wanted to determine what matters to this group, how they make decisions and their attitude toward investing.  That age group controls nearly $3.5 trillion in investable assets.  Schwab is interested because they are the top custodian for independent Registered Investment Advisors (RIAs) like Korving & Company and believe that RIAs are best able to service this group.

So what do these investors have in common?

  • The study revealed that they are anxious and insecure about the future because they have already experienced a couple of major economic crises, domestic terrorism, unemployment and several financial bubbles.
  • They don’t trust the industry, believing that they recite corporate talking points and don’t really care about them.
  • They are short-term focused and like to keep large amounts of cash as a safety net they can trust.
  • Success for them is “having the freedom to avoid hardship and to not be a burden to others.”

I should add that people in this age group are less likely to work for a company that offers a pension, making them more dependent on themselves for retirement.  Except for that, in many respects, this generation is not very different from preceding ones, except that they are more apt to rely on digital communication and the Internet, having grown up with computers.  Many in this group cannot differentiate between types of financial advisors, and do not understand the difference between the independent RIAs and the brokers that work for the “big box” stores.

Schwab’s conclusion:

“Our findings reveal that Generation Now investors want a trusted guide with expert knowledge who deeply understands them and their unique needs.  We believe independent advisors fit that need, but this generation just doesn’t know it yet.”

“Their ideal financial advisor relationship is with one whom they can build a trusted and transparent relationship, based on empathy and understanding of the whole person, not just their financial goals,” Schwab says.

“They want their advisor to provide planning and financial advice alongside expert advice in other related areas, such as tax or insurance.  Generation Now also expects to be heavily involved in decisions regarding their investment strategy.

“Advisor accessibility is important to this group.  They want to be able to communicate with advisors whenever, wherever, through a combination of in-person meetings as well as voice, text, e-mail and videoconferencing.”

It sounds as if this generation is looking for firms like ours.  Check out our new website.

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Poll – What Interests You Most?

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