Keep the Progress Moving Forward
By Robert A. Mecca, CFP®, MBA
Vice President of Wealth Management
August 22, 2019
You’ve undertaken a family journey. This significant mission involves hard, diligent work developing a roadmap to help secure your financial future. You’ve partnered with a proven, successful independent Financial Planning firm who has a strong bench of highly qualified professionals with a long history of solid experience. Most have credentials second to none. Many are CFPs (CERTIFIED FINANCIAL PLANNERS®). All are fiduciaries and several have received awards. All have your best interests at heart.
There is a sad part, however.
According to a recent statistic, only 13% of children utilize the services of their parents’ financial planner. That is an extremely low number. The study did not say why this is so low so I came up with the following.
a.Rebellion…Upon the receipt of the parents’ money (via inheritance or other means) the children rebel and go another direction just to make a point.
b.Chemistry…Perhaps the child does not click with the parent’s advisor.
c.Other advisor…Maybe the other advisor appeals to the child because of a nice smile, better looking, or is a baseball coach to the neighborhood kids.
d.No advisor…Most children feel they can handle finances and an advisor is not needed.
e.Parent’s advisor didn’t reach out to children while parent was alive.
Rebellion for rebellion’s sake rarely leads to a successful financial conclusion. In the end, emotional decisions might result in the potential for significant money lost. That’s your hard-earned money that is at risk. With StrategIQ Financial Group (SFG), the parent has an established partnership with a Fee-Only firm who is a fiduciary placing the interests of each client first, and who would continue to place the interests of the children first also.
If the child does not have chemistry with the parent’s current advisor, SFG offers a strong bench of other qualified professionals within the firm with different personalities who can be selected to click with any child.
Choosing an advisor based on looks, smile, etc. is not a valid reason when it comes to managing a family’s financial future. That person who is good looking, has a nice smile, and volunteers as a baseball coach in reality could represent a company selling products and who collects commissions. Thus, a potential conflict of interest may exist. Statistics have shown that most people calling themselves advisors are compensated in part or entirety by selling products (and smiling all the way to the bank).
Finally, it may be that the child doesn’t feel he/she needs an advisor. A study revealed that 69% of millennials claim to be financially literate. So, about seven in ten think they know how to handle finances. However, the study demonstrated that only 24% were actually capable of handling finances.
A little more than half of millennials – 56% - don’t have any money saved for retirement. Almost four in ten Gen-X people don’t have any money saved for their future, while the average credit card balance carried is almost $8,000 at relatively high interest rates. Going it alone might be a recipe for disaster.
Our advisors at SFG want to meet your children. We often include younger children in our meetings and we welcome their participation with your permission. Prior to such meetings, you can tell us what issues you would like to address. If your child is older, we can have a discussion directly with them. It doesn’t matter where they live. Geography is no obstacle. However, know that we will not share your personal information with your children without your prior permission.
The bottom line is this… you worked hard for your money. As this world gets more complex and volatile, the next generation needs a proven partner with a firm who has their back. It makes sense to keep the progress moving forward.
God's Love Letter
“Since we have a great High Priest, who has gone through the heavens, Jesus the Son of God, let us hold firmly to the faith we profess. For we do not have a High Priest who is unable to sympathize with our weaknesses, but we have One who has been tempted in every way, just as we are - yet without sin. Let us then approach the throne of grace with confidence so that we may receive mercy and find grace to help us in our time of need.”
Hebrews 4:14-16
“The Lord is gracious and compassionate, slow to anger and rich in love. The Lord is good to all; He has compassion on all He has made.”
Psalm 145:9-9
Mecca Moment
Good things can come to those who plan ahead.
Unless otherwise expressly indicated, the opinions or views expressed in this article are the author's own and do not reflect, and may differ from, the opinions or views of StrategIQ Financial Group, LLC or others within StrategIQ Financial Group, LLC, including its officers, managers, owners, employees or other service providers.
