I grew up benefiting from lessons learned by the Greatest Generation, watching Baby Boomers build, and as a Gen Xer, making my own path. Every generation suffers stereotypes and creates its own collection of new ideas, perspectives and hardships to overcome.
One thing every generation seems to have in common is collectively thinking that everyone in the NEXT generation is half-crazy and that their ideas will never work. Millennials get lots of jabs. People call them lazy, uncommunicative and slow to join the “real world.” Older workers claim these young creatives are impossible to work with because they are married to their technology, and then rant because their parents seem to let them live at home in their basements for years on end. Jokes aside, I promise this is not another article bashing millennials. In fact, it is the complete opposite. Recently, millennials I work with have encouraged me with their knowledge and insight relating to investments, saving habits, financial decisions, and their focus and commitment to the future. I hope to share this sense of inspiration! What is all this talk about different generations and, in particular, Millennials? With people living and working longer, we have more distinct generations in the workplace than at any time in previous history. First, a quick table showing currently defined generations. (Everyone seems to define this a little differently, so this is my combination) • Greatest Generation or Traditionalists—Born before 1945 • Baby Boomers—Born 1946 to 1964 • Generation X—Born 1965 to 1979 • Millennials (sometimes known as Gen Y)—early 1980’s to early 2000’s • Those born since early 2000’s do not have a definitively named designation yet have been called Gen Z, iGen or Centennials Not surprisingly, no two groups give exactly the same timeline defining the boundaries of this generation. The generally accepted range of birth years for the Millennials is between the early 1980s through the early 2000‘s. Why are they so different from us? (and who is “us” anyway?) Through my work, I cross paths with clients and friends from all generations. Recently, what I have seen firsthand with Millennials does not necessarily match up with what pop culture says or with media rants about the loosely structured, directionless, and selfish generation. You may be saying to yourself, “Of course a financial advisor would meet the overachieving members of this generation.” Well, I will give you that, and also suggest that every generation runs the full spectrum. Whether Baby Boomer, Gen Xer, and even the most recent Unnamed Group, some members of any group will be more driven toward achieving goals and building wealth and some will not. We all know people of all ages from both categories. What makes Millennials tick? How can I understand their thought process? You might ask, “Why are they so different?” What fuels their different behaviors, ideals and the way they view the world? Because every generation is at least loosely defined by what was happening the world as they grew up, let’s take a look back. This generation was in school, growing through their formative years during the “lost decade” that included the 2008 financial and economic collapse (see NOTE) and the repercussions that followed. Many watched family and neighbors struggle to keep their jobs and maintain financial stability. While those who grew up in Oklahoma may not have seen this up close, everyone watched it happen in the United States and it colored their perspectives on what stability looked and felt like. Guess what? Growing up during one of our nation’s worst financial periods made a permanent impact on this generation. So, if these young adults seem aloof, skeptical or opinionated, it is not hard to understand why they might have those feelings when they are put into context of their foundation. (NOTE: Some Millennial clients I work with are not from Oklahoma and they tell a drastically different story from Millennials who spent their school years in this part of the country, which in many ways took a lesser hit than non-oil/agricultural states.) Below, a few common grumblings I hear about Millennials and my responses. They aren’t buying houses and will rent for the rest of their life. Probably not forever… But why do they feel this way? Some Millennials watched their parents lose the family home during the financial crisis and even if they didn’t lose the home, the fact it wouldn’t sell prevented many families from having the flexibility to move to make a new start. Member of this generation may equate homeownership and the debt of acquiring a home as an obstacle to maintaining flexibility in an ever-changing world, rather than the way previous generations perceived buying a home to settle down and establish a home base. They hate capitalism and big business. Some do… But again, why? Millennials watched parts of the world crater during the financial collapse and do not have a bigger picture yet to understand that life is long. Many of them saw their parents downsized, pensions eliminated etc. and they witnessed one of the ugliest times in recent history, filled with greed, corruption, excess and the near-failure of our economy and markets. Is it any wonder they may lack loyalty and admiration for big business? Is it a surprise they scorn the ugly side of greed and capitalism? Millennials often do not despise profit and companies; but rather they value relationships, transparency, and loyalty. The appreciate doing business with someone they know, and with an entity that acts conscientiously. This can be celebrated and makes me, for one, appreciate their views. Millennials are lazy. Some are… Some aren’t… no different than any other generation before them or after them. Rather than being lazy, Millennials I work with appear dedicated and successful when working for purpose. Millennials take the time to discover who they are and what they want before putting down roots and making longer term investments. And, yes, sometimes to a fault, at least from some observers’ perspectives. I, for one, envy their intentionality (when that is indeed what it is). How much more productive could our country be two decades from now if this generation is thriving in their professions rather than punching clocks at positions they resent because “that is how it has always been done”? Finally, when will these young people grow up? What does “grow up” mean anyway? Maybe a better question is how can this generation contribute to make our world better? The world in which they grew up, and quite frankly, the world they will be living in, is much different than even 50 years ago. Technology changes weekly, college tuition has skyrocketed, medical technology means we can replace things that wear out that we never dreamed we could replace… This generation, the mission-driven Millennials, will be the group driving much of this change. They, and their inventions, will be caring for us as we age. We take note of their sometimes-poor communication, we lament the days of early home ownership and more savings, but we have much to gain from their creativity and intentionality. Let’s work to ignore the Millennial bashing, give them a chance, cheer them on and even learn from their perspectives. They will find their way like all other generations and may surprise us as they grow into successful leaders, loving parents and productive fellow citizens. Soon it will be July 4th (Independence Day), the U.S. celebration of our independence dated back to 1776! I also celebrate an “Independence Day” of sorts dating back to January 22, 2010. You see, on that day in 2010 I took the leap of faith and began the good fight to achieve my independence, be my own boss, and have the ability to truly focus on serving my clients. What being an Independent Financial Advisor means to our clients: Conflicts of interest are minimized Note: There will always be conflict of interest that needs to be disclosed, but far less conflicts exist when an advisor works primarily with his/her clients and not as an employee of a brokerage firm. Open architecture Clients benefit from an open architecture of investment offerings. As an Independent Advisor, we are able to consider many different avenues for a client’s specific needs. For example: Many advisors who are employed directly by their firm who want to offer a fee based platform for their clients may find themselves limited in their choices or be required to utilize their firm as the money manager for their clients. While that may well turn out fine, it doesn’t necessarily lend itself to being impartial. As an Independent Advisor with an open architecture, there can be many solutions available such as hiring our firm’s team, utilizing one or more of hundreds of outside third party money managers (separately managed accounts), the advisor(s) choosing to build portfolios or models of all types of investments at the local level, etc. Bottom line: As an Independent Advisor, we are not captive nor are we an employee…we work for our clients. Clients benefit from free flow of research, market information, ideas, etc. A colleague and good friend of mine has always described it as “taking the training wheels off.” Independence means there is no restriction of information and ideas, no crafting of messaging, and a culture of freedom.
I will never forget my first Raymond James National Conference… things that particularly struck as amazing are as follows:
No sales goals or quotas Now to be fair, does the broker/dealer (Raymond James) want us to perform at some base level? Of course they do. However, as an established Independent Advisor, there are no sales goals, no monthly or quarterly performance tracking charts, etc. Again, this independence allows the advisor to focus on his/her clients. On this subject…I have never found any value in sales goals, quotas, or contests. In my opinion, they only serve as distractions from serving clients. In my 17 years, I have found that when you always put the client first, all of the other stuff takes care of itself. While the fight for my independence was not without strife and some hurt feelings along the way, it was totally worth it!! There is no better feeling than having the freedom to serve my clients and truly build my own business that reflects my values, beliefs, principles, and personality…not what some company believes that they want me to portray. Any opinions are those of Keith Holsten and not necessarily those of RJFS or Raymond James. It is not an accident that “life planning” is at the forefront of our new brand: “life planning. wealth management.” You see, it is very difficult to be successful and happy in life without purposefully planning out your life, hence, “life planning.” My personal “life planning” journey began in 2008. Anyone remember what happened in 2008? Anyone? *cue the crickets* Oh, yes: The Great Recession! During this time, my life was an emotional rollercoaster. My days were booked with client meetings… with clients who were justifiably terrified and deeply concerned about their money (I’m pleased to say that all of my clients and myself have survived). What about 2009? Anyone? This one isn’t as obvious but equally painful… my divorce (also, I’m pleased to say very amicable). As you can plainly see, things weren’t going my way… I was stressed, unhappy, and desperately needed positive changes and a life plan. So… back to life planning… all of these events created the perfect storm and the perfect opportunity for me to sit down and make myself reflect and plan my life moving forward. But, how would I go about life planning and where would I start?!?! Photo from https://unsplash.com/search/reflection?photo=JtBh4Y1J3MY by Bob Brents Well… I’m a firm believer that everything happens for a good reason and also that people and/or opportunities pop up to assist at the opportune time if you look around and pay attention as well as listen! So it was that I found myself sitting in a mini regional meeting with my former employer (not very excited to be there, but I was listening), when a mentor of us advisors pulled out a book and said, “You should all read this!” The book? Who Are You and What Do You Want? I figured it couldn’t hurt… I enjoy reading and can always learn something new. Right away, I read the book… twice and went to work on the process highlighted in the book! “Who are you, and what do you want?” Without giving everything away… the basic process consists of a personal weekend retreat of brainstorming, personal reflection, and thinking through every event in life from earliest recognition to present. It was at my first retreat in 2009 that I sketched out my “life timeline” charting every decision, event, and happening for my entire life. When the weekend drew to a close, I knew more about myself than I ever imagined. It also became clear over the months following what I wanted my life to look like… It turned out that I wasn’t unhappy about my career choice at all; I just wanted to have autonomy in serving my clientele and my own business. Less than 1 year after my first retreat (I have done 8 years of it now), I knew what I wanted my life to look like, what I needed to do…and was terrified! So, there I was at the crossroads. It was time… I resigned from the company with which I had spent the last 10 years and opened up my own firm hoping and praying my clients would follow (many did). The first year was very challenging to say the least, but it was well worth it! I guess I owe my deepest thanks to a fellow mentor at my former employer for this. Today, I have a plan… not just a financial/investment plan but a “life plan.” Every day, I live life with purpose and love what I do, and my clients are the beneficiaries of me living out life with passion.
“Life planning.” It’s our brand on purpose… I find passion in helping our clients find their life plan. I highly recommend the book to anyone wanting to participate in purposefully planning their life with one disclaimer: Be prepared to be open-minded; it’s ok to be uncomfortable and scared for a minute… but the rest of your life is so worth it! Today we live in a very fast paced, volatile, and ever changing environment. I would argue that the world is changing at the fastest pace ever! It is also my belief that because of the metamorphosis, many people are in a “panic” because everything they have known for decades is being uprooted right in front of their very own eyes. Enter our current political landscape… with the rapid change in our world, many people are looking to our political parties or leaders for direction and help. I don’t think that they will find what they are looking for from any of our leaders. Things will continue to change quickly, and it will be up to us to evolve, adapt, and move forward in a positive, productive way to find ways to come together and get along in our community, state, and nation. Back to politics and your money… do not get political with your investments and long term financial future! Before I go on, I’m not advocating that investors should bury their heads in the sand ignoring the market, economic, political conditions, etc., but I am saying don’t make decisions regarding your long term investment goals based on who or what party is in office… how about a couple of examples? Photograph by J.E. Glaze It’s no secret that Oklahoma is chalked full of conservative Republicans sooooooo… let’s go back in history to the Spring of 2009 when President Obama was in office, and the market had put in its bottom after a grueling collapse. Do not get political with your investments and long term financial future! Good time to invest, right? Republicans didn’t think so… they were worried sick about the market, economy, and President Obama. Guess what? It ended up being one of the best buying opportunities ever in the market. What about the flipside? Another example is in order. Photo by Kayle Kaupanger via Unsplash More recently, President Trump was elected in November 2016. On the whole, Democrats were not pleased, but guess what? The market rallied strong to the disbelief of Democrats and even some Republicans. Democrats who yanked their money out of the market missed an opportunity.
Now, to be sure, the market has rallied for several years and will correct at some point… probably even during the current administration. However, the point is still a valid one: don’t invest or not invest your money based on your political beliefs only. Any opinions are those of Keith Holsten and not necessarily those of RJFS or Raymond James. There is no assurance any of the trends mentioned will continue or forecasts will occur. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. |
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