Millennials need assistance planning for retirement, but
many advisors do not want to work with young people who have few assets. The
solution may be for the young people to reach out to their parents' advisors
for help, said Len Hayduchok, president and CEO of Dedicated Financial Services
LLC in Hamilton, N.J.
“Millennials face a different set of challenges than older
clients,” said Hayduchok, who works with retirees and pre-retirees and is
connecting with their children. “The world is more complicated and more global.
They do not know if Social Security will be there for them; they have no
pensions, and they probably have student debt to pay off.
“They may have to work far past 65, and some of them feel
there is no point of planning for an uncertain future,” he added. “So they live
in the present. This is a tremendous challenge for millennials.”
They also have to deal with market volatility returning
without being able to turn to the safer route of bonds because the returns are
so low, he said. Nevertheless, Hayduchok said, millennials need to plan for
both the short and long term.
“Most things in life that breed big results start with
small gains, whether that is athletics, musicianship or finances,” he said.
Young people should start cutting tiny expenses for things
they can give up and instead save that money. They should look into finding
some way to bring in a little more money and save it. A big challenge for
advisors is to persuade them to do this.
“Financial services professionals have ignored millennials
for too long,” he said, “but these are their future clients. They should
leverage the relationship their parents already have with an advisor, and the
advisor should see them as the next clients.”
here for the original article from FA Mag.