Issue link: https://resources.envestnet.com/i/1527494
Long-Term Financial Planning Younger Affluent generations want to know how short-term financial decisions connect to their long-term financial goals. They also want information on how to stay disciplined and gain easier access to automation. For older Affluent generations, they are seeking a clear understanding of their long-term financial goals, and they want a set of clear steps on how to get there. Which would make managing your long-term finances easier? Top Three Ranked Younger Millennials (25-35) Older Millennials (36-44) Gen X (45-56) Boomers (57-65) A clear understanding of my long-term financial goals and the steps to get there 38% 41% 50% 39% Advice from a financial professional, such as a financial advisor or investment manager 33% 38% 37% 40% Knowing how to create a financial plan that will help me achieve these goals 36% 32% 42% 33% A better understanding of how my short-term saving, spending, and investing impacts my ability to reach my long-term goals 40% 35% 30% 35% A list of investment ideas that match my risk tolerance and ability to invest 29% 31% 33% 29% Information or education on long-term investment options and how to make good choices 30% 33% 25% 27% Information or education on how to stay disciplined with my investments and financial plan 32% 30% 26% 24% Access to a system that allows me to diversify my investments more easily 26% 27% 19% 16% Access to a system that allows me to automate regular investments 26% 23% 17% 14% None of these 3% 3% 7% 14% Other 1% 0% 0% 1% Strategy to Consider As part of your annual client conversations, do you review daily financial behavior as well as long-term planning? Do you ask clients to share both their short-term and long- term financial goals? Is there a simple tool you could create or use to facilitate these conversations as goals and priorities change over the years? Documenting this change and readjusting for it annually can provide clarity and confidence to clients as their needs and experiences evolve. Leveraging technology can bring together the short- term and long-term financial goal planning. Opportunity: Consider taking note of whether clients are more focused on short- term or long-term goals during your conversations. This insight can provide great clues on where to focus future conversations while also providing opportunities to connect the two. 1 in 2 Affluent Gen X investors want to have a clear understanding of their long-term financial goals and steps needed ©2023 Envestnet, Inc. and The Center for Generational Kinetics. All rights reserved. 23