Millennials: Why You?

Why do you and other Millennials need a financial advisor?

If you’re reading this, you’re obviously considering a financial advisor. We’d like to confirm your instincts on enlisting help from financial experts such as CapWealth Advisors. Here are three very big reasons to do so:

1) Debt. Like many Millennials, you may have student loan debt that is casting a dark shadow on your financial future.

CapWealth Senior Vice President and Financial Advisor Jennifer Pagliara writes a bi-weekly column on Millennials and finance in The Tennessean newspaper. In one of her columns, titled “Student Loan Debt Is a Time Bomb,” Jennifer writes:

“U.S. student loan debt totals $1.2 trillion. Yes, that’s trillion with a “T.” In 2014, 70 percent of college graduates left school with an average student loan debt of $33,000. … To put the skyrocketing costs of college in perspective, consider that since 2000 the Consumer Price Index has climbed about 40 percent, medical costs about 75 percent and college costs nearly 140 percent — while real wages have stayed flat.”

CapWealth Advisors will help you with debt management, budgeting, creating a financial plan tailored to your needs and goals, as well as investing. We’re happy to help you allocate your employer-sponsored 401(k) plan and existing IRAs, and we have many tools for beginning new investments.

2) The best devices come with great support. Epic road trips rely upon online maps and navigation systems. And financially savvy people follow a financial plan. Millennials are after valuable life experiences and they’re self-reliant, looking to research and their peers for guidance. Nothing better prepares you for a lifetime of ever-widening lifestyle choices, and nothing says wise individualism, like a dependable financial plan crafted in collaboration with an experienced expert and ongoing guidance. We’re an always available resource, not a transaction.

3) Finally, you need a financial advisor because time is of the essence. It’s never too late to get your finances in order, but you also can’t start too early, particularly when it comes to investing. In this regard, because you are young, you have a decisive edge over older investors. As our firm’s Jennifer Pagliara wrote in another of her columns on Millennials and finance, “Time is your friend when you’re investing and your enemy when you’re not.”

That’s because of the power of compounding interest. As Jennifer describes this phenomenon:

“This is the snowball effect that happens when your earnings from investments are reinvested to generate even more earnings. With successful investments, over time, the growth becomes exponential and not merely arithmetic or linear. … Though retirement may be 40 or more years away and deferred gratification may feel unbearable, millennials must start saving and investing for retirement. … You can never get those non-investing, non-compounding years back. The clock is ticking.”

Better than defining it, let’s show you the power of compounding interest by comparing two examples. Click to learn about Emily, who started investing at 14. Then click to learn about Daniel, who started ten years later at 24.