Your parents probably handled your finances growing up. They made sure you had what you needed, kept you from going off the money rails, and maybe even taught you about the inner workings of the financial household. Then at some point, you took over that responsibility. Your parents set you free to make your own decisions about money. You’ve probably made a mistake or two along the way, but now you’ve settled into the whole adulting thing. It’s time to get organized and hire a financial advisor. Your parents will likely try and nudge you toward using their long-time advisor. You’ll hear things like “We’ve used so-and-so for years. You should too.” Their advisor may even give you a call and try to woo you into becoming a client.
You have a big choice to make. Do you stick with their advisor or look elsewhere? Decisions…decisions. Here are a few reasons why their advisor may not be a match for you.
You and your parents are at very different places in your financial lives.
Your parents are much older than you. What does that mean? You’re worrying about paying the monthly bills, charting your career path, buying your first house, paying for your kids’ daycare, and building up some savings. Your parents are crunching the numbers on their retirement nest egg, considering downsizing, and figuring out when to sign up for Social Security benefits. You want to steadily grow your investments to reach your short and long term financial goals. Your parents want to hold steady and stay the course.
How does this all translate into finding the right financial advisor? Your parents’ advisor may be very helpful in guiding them through their pre-retirement years. Great! But what about your situation? That may be a different story all together.
You are ready to make your own financial decisions.
If you take a look at where your parents are financially, you may find that they have made lots of mistakes over the years. It’s very common to have financial pitfalls along the way. But are they still having trouble managing debt, even though they’re so close to retirement? Did they make solid investment choices? It can be difficult to see the errors in your parents’ ways. That being said, it’s an important step to take in realizing that it’s time for you to chart your OWN financial path.
Just because your parents did it a certain way doesn’t mean it’s how you should go about it. Your family’s advice may not always be the advice you need. Why not seek out an objective opinion and see what happens? At least then you can be confident that you’ve fully explored your options.
Their advisor may not have your best interests at heart.
A lot of traditional advisors don’t see the value in spending quality time and effort on the younger generations. Why? It’s simple. Younger folks haven’t built up the net worth their parents have. It’s also very common for an advisor to create some kind of relationship with their clients’ adult children knowing that one day you’ll inherit your parents’ assets. They’ll just hang onto you until then.
How does that translate into the level of service you’ll receive now, when you don’t have millions of dollars, but do have lots of questions? It may be very hard to get that one-on-one attention you need. If your parents’ advisor isn’t returning your phone calls, is slow to respond to emails, and can’t seem to find the time to sit down with you, those are red flags for sure. They’re more interested in working for your parents than they are in providing solid service to you.
Why we are different.
At McKay Wealth Management Group, we see the value in providing young professionals and families the guidance they need. We put our clients’ needs, interests, and goals first, and are always willing to be flexible in our approach. We get where you’re coming from! Regardless of your current knowledge of the markets, investments, and financial planning, we’ll meet you where you are. Our goal is to empower the younger generations to take control of their financial wellbeing. It’s never too early to seek out advice, regardless of how much money you have in your savings account.
We’re here to help in any way that we can. If you’d like to check your financial health right now, take our Financial Wellness Quiz and see for yourself!