We’re proud to be in the bottom 5% of financial planners
I recently read an article in the New York Times about financial services companies’ increasing demand for young new investment advisers and broker-dealers. This is not the only article to point out that over half of investment advisers are over 50 years old and less than five percent are under age 30.
In contrast, 100% of Monte Largo’s staff is under age 30, putting us squarely in the bottom 5% of the age range of financial services professionals. So why aren’t we running off to Bank of America or Morgan Stanley to pick up a fat paycheck from a fatter old executive?
It might have something to do with our issues with authority, but personally I find it exciting that we are able to connect with clients who would otherwise avoid financial services altogether.
One of the most common replies I get when I tell other young people that I’m a financial planner is “That’s great! I’ll give you a call when I’m rich and have money to invest.”
This is where I reply that I’m a financial planner and not a money manager, so I don’t care how much money you have and I’m definitely not interested in investing it for you while I slowly suck away at your returns with a 1% fee. But more importantly, as a young person of course you don’t have money; your most valuable asset is time.
Albert Einstein famously (and allegedly) said that compound interest is the most powerful force in the universe. But it works best when you give it a lot of time to work for you. This means that the sooner young people start maximizing their savings rate and investing those savings wisely, the sooner they can retire and live on their own terms.
While big financial services firms can invest your money well (though statistically, they probably won’t beat the market), old-school financial advisers aren’t connecting with young people to help us use our abundant time most wisely, in line with our goals and values, which may differ significantly from our parents’ generation.
My call to fellow young professionals is this: you may not be wealthy (yet), but you have one asset in spades that older folks can never get back. Don’t let it go to waste.
Alejandro is a financial planner with Monte Largo Financial Advisors LLC.