At this time of year I get to talk to more people about what they are doing and how they are doing it. People seem to be more open, or possibly so overwhelmed that their guards are down and they answer more freely.
So I have been asking if they use financial advisors for their saving or investing habit. I am startled by the millennials who are apparently keeping large amounts in savings accounts still making less than 1%.
I ask them if they know what inflation is. They know but they were unaware of the risk of an all cash portfolio.
Some have plans, to buy a home, creating a reserve for when they finally move out on their own. Some are just scared of the market.
None seem to work with a financial advisor. Granted these people are not the target market for most financial advisors. They do not have $500,000 to $1,000,000 to invest. But here are still people who will work with this demographic.
I have given out some cards to these people, but they don’t reach out. I am not completely certain what their fear or motivation is or not.
But at some point they will need to move from the sidelines to the playing field, otherwise their savings will be worth less than they thought, Inflation is low and has been, but some costs are increasing and will continue to increase.