Generational Planning for Generation Y

(1981 - 2000)

Planning in the Generation Y group, for many, can be very exciting, but at the same time very nerve wracking. This is the generation of the most college alumnus in history, many just about to graduate, and those gearing up for college. Life is just starting to take root and becoming self-sufficient, so launching yourself from a strong start will help you excel later in life. You have more options at your fingertips in technology and investments, than any other generation before you. Many will consult with their parents about investments, employment work benefits, insurances, and many other items as they are getting their feet wet. That’s totally okay, but now it’s time to build on your own relationships and networks just as they did. We encourage you to talk to your parents, in fact, we are happy to meet with you and your parents so your parents can hear what we are trying to do for you. Here are the following planning ways we work with Gen Y’s….

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Financial Planning: Many young clients think that doing a full comprehensive financial plan isn’t needed at their age. They wonder why they need a plan; they don’t have anything yet. Exactly! You don’t start doing a plan when you feel like you have assets, you develop a plan to create strategies to obtain assets, grow wealth, finding the proper investments, and investment vehicles. We also need to see if your insurance policies are adequate to protect your assets now and as they grow, because in one split second, all the assets you’re starting to grow may be gone in a flash. Are your 401(k) investments allocated properly to make sure you hit potential gains for long term growth? How about student loans or credit card debt, are you paying them off in the most efficient manner? If you’re having children, we need to review to make sure you have the proper estate documents God forbid you and the other child’s parent pass away, while having enough coverage to financially protect them.


Investments: GO BIG or GO HOME RIGHT?! Yes, well, to an extent. You’re young, making money, and have a lonngggg way to go until retirement. However, let’s not be naive, time flies! Stop for a second, think about when you entered high school or graduated high school…seems like yesterday doesn’t it? You can bet that retirement age will come quickly so we can’t delay retirement savings and investments. Everything is based on YOUR comfort level of risk, but at this stage in life, it’s best that we look at aggressive or growth oriented investments, investments that provide us opportunity for greater gains. Of course, with greater gains comes with greater downside, but remember, we aren’t retiring in five years. We have 30, 40, 50 years!!


Taxes: Generation Y is just entering the working world on their professional levels. Yes, we’ve all had jobs before graduation, but now, you’re likely in your career or at least a job making more money than ever before. Now you’re starting to see the frustration of seeing so much money come out of your pay check to pay for taxes. So, how do we obtain more tax breaks? Maybe we need to look into buying our first home and taking advantage of building equity through a mortgage and itemizing with the interest write offs. Is it our dream home? Probably not, but we are better off building equity and saving money owning something than to just rent and get no equity or tax relief. Maybe we need increase your 401(k) contributions. Mileage documentation, work expenses, trips are other expenses we should review that you may be missing out on.


Insurance: You’re young, you’re healthy, you’re active, you’re probably exercising and/or running, trying to eat right, doing yoga, hitting the gym, doing marathons, etc. Now is such an important and crucial time to buy your life insurance, and as much as you can because it’s the cheapest it will EVER be! Do we buy a big death benefit term policy and invest the rest? Do we buy term and permanent for lifetime protection at the cheapest cost you’ll ever get? Also, do you have enough car insurance to protect yourself and others in and out of your vehicle? I’ve heard so many times, “my parents say I do,” but they really don’t. In fact, many were so under insured that they would have been in a lot of trouble in an accident. Have you had a professional agent look at it? Did you know for just a small amount (pennies on the dollar) you could have a couple HUNDRED THOUSAND dollars more in protection? How about your homeowner’s policy? Is everything covered? Do you know for sure! I’ve brought in my insurance agent to review clients’ policies and go to their house to see if they are heavily underinsured, and you know what, they were! This is the foundation to all your financial pieces to protect everything you work so hard for.

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College Education Savings: Many of the early 80 Gen Y babies are now having babies themselves. So many want to look into college savings for their kids. We can look at many different vehicles. Should we review state sponsored college 529 savings plans, or prepaid tuition? Or maybe we want to review other accounts that aren’t just specific to college so we look at Individual TOD or JTWROS accounts, or possibly even a Roth IRA? Why Roth IRA for college savings? Great question, we can get two birds with one stone and we are happy to explain why a Roth may be a better college savings vehicle than your traditional college savings accounts.


Estate Planning: Estate planning here is easy! It’s not complex, it can be very cost efficient, and can get a lot squared away in a short period of time. Many of the Gen Y individuals do not think much about estate planning and think it’s only for the older folks. Now is a crucial part of time to get this planning done when you get married and starting a family. We need to set up at the very minimum, Guardianship Wills, if your children God forbid lose both of their parents in a tragic event. We need to designate on who will take over as guardians of your child(ren). Do we leave it to the courts to decide that? Of course not. We want them to be raised by a close one that we love, trust, and know they will do everything to raise our child(ren) properly!

Bradley Wealth Advisors

Maryland Location:

10411 Motor City Drive, Suite 750
Bethesda, MD 20817

Texas Location:

5800 Woodway Drive, Suite 311
Houston,TX 77057

Ph: 240-395-1423


Registered Representative, Securities offered through Cambridge Investment Research, Inc., A Broker/Dealer, Member FINRA/SIPC and Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Bradley Wealth Advisors and Cambridge are not affiliated.

This communication is strictly intended for individuals residing in the states of AK, AZ, FL, GA, MD, PA, SC, TX, and VA. No offers may be made or accepted from any resident outside the specific states referenced.