As their parents get older, many millennials are having to step in and become caregivers. Because of this, many millennials are becoming interested in estate planning themselves—seeing its benefits and their need for the future. For many of them, they are not only taking care of their parents but also their children. This has put them in a unique situation that heightens the need for estate planning even more. Studies have shown millennials’ reasoning for estate planning, their unique “Sandwich generation” requirements, and other factors to take into consideration during this process. Below are a few of these findings and how young adults can incorporate them into their estate plan.
Articles Tagged with Millennials
Different Generations, Different Values
Houston Millennials have a different perspective about love, money and family.
Boomers have taught their children well. While nearly three quarters of boomers see a gift of money as an expression of love, according to a recent survey, their children don't see things the same way. These different values have a significant impact on how families should discuss and plan for inheritances.
Reuter's recent article, "Equating inheritance with love can cause discord," explains that Millennials hold very different views about receiving gifts. According to the survey, roughly 33% of them feel that a monetary gift is a way for the older generation to exert influence over them.
Houston Millennials Require New Financial Planning Strategies
Financial planner Joe Pitzl, 34, says Millennials like himself have a different way of absorbing information than their parents and grandparents, and as a result planners in that age group take a more collaborative approach.
As reported in a recent USA Today article, titled “For Millennials goal is financial freedom,” some financial planners are finding that Millennials prefer to work with those who understand their generation. They don’t respond to the same advice given to their parents, and they’re really looking for coaching on financial health as opposed to traditional financial strategies.
This is a group that’s probably going to have several jobs in their lifetime and is used to being able to get answers with the click of a button. Many Millennials also may have a ton of student debt and may have had trouble finding a job which means that the financial strategies that worked for their Baby Boomer or Gen X parents might not fit their circumstances.
Houston Millennials Should Start Saving Now
Don't think savings is a big deal? Ask anyone who is running their own business, decided to retire early or abandoned their old job to go after their dream career. Savings was their saving grace, no pun intended.
The Fall 2014 Merrill Edge Report showed that 80 percent of millennials think about their long-term finances when they are paying bills; nonetheless, they also need to pay themselves.
A recent The Huffington Post article, titled ”4 Things I Wish I Knew About Money in my 20s,” emphasizes that the most important thing a millennial can do today to improve his or her financial future is to start saving. It's important for millennials to find a balance between paying off any debt and saving for their future goals and retirement.
Hey Houston Millennials, You Better Start Saving!
Cash-strapped millennials are slipping into the red. In fact, their savings rate has dipped to negative 2 percent, meaning that they're spending more than they have.
The unemployment rate was down to 5.8 percent last month and the U.S. economy added 214,000 jobs. However, a recent article on the CNN website, titled “Millennials aren't saving a dime,” reports that most millennials are in trouble even though the job market looks brighter.
Keep in mind, wages have remained flat without much increase since back in the 1990s. As a result, even with good news about jobs and the low unemployment rate, millennials continue to have a rough time making ends meet.