Fresno Financial Advisor News: The Millennial Economy

Fresno Financial Advisor News: The Millennial Economy

The millennial generation hasn’t had it so great. A recent economic analysis reports that since entering the workforce five to 20 years ago, the average millennial has experienced slower economic advancement than any other generation in U.S. history.1 It’s not just a matter of long periods of high unemployment. It’s also because getting that first “real” job during a recession often means a lower entry-level salary that can affect their lifelong earning potential.

Not only that, but millennials can’t seem to catch a prolonged break. They’ve experienced the impacts of 9/11, the Great Recession and now the COVID-19 pandemic — all within the past 20 years.

These setbacks matter to all generations because millennials represent the future of the U.S. economy. As of July 2019, millennials surpassed baby boomers as the nation’s largest living adult generation.2 It’s important that this demographic make inroads in entrepreneurial or job creation endeavors while continuing to advance industries, both old and new. Growth in these areas increase GDP and wealth prospects for the entire nation.

And yet, in contrast to the historical trend of each generation boasting progress faster than the prior generation, this has not necessarily been the case among millennials. On one hand, as of 2018, 40% owned their own homes and 40% of millennial women had children. However, their numbers pale compared to Generation X, among which 45% owned their homes and 53% of women had children at the same age as today’s millennials.3

While millennials constantly seem to be playing catch-up, it’s not a problem of their own making. This generation is the largest to suffer from widespread student-loan debt, the lingering effects of successive economic declines, and substantially increased health care and housing costs during their young adult years.4 Fortunately, these millennial misfortunes have made them a rather practical generation of young adults. Having outgrown their previous reputation as spoiled, entitled teenagers, this demographic actively seeks out employment among established companies. Their top job priorities are flexibility, growth and equal pay.5

Even during the pandemic, they have stepped up to assume roles as first-time homebuyers, accounting for more than a third of residential sales this past July.6

Yet, we all know that the road to success is frequently uneven. The recent pandemic has had a varying effect on young adults. While some have had to move back home with their parents,7 others have taken advantage of their remote-work situation to engage in domestic travel indulgences, working wherever they go.8

Remember, regardless of your age, income or assets, we are here to help support your insurance needs. Contact us for more information.

Fresno Financial Planner Takeaways 

Fresno portfolio advisor– Soutas Financial appreciated these points: The millennial generation hasn’t had it so great. A recent economic analysis reports that since entering the workforce five to 20 years ago, the average millennial has experienced slower economic advancement than any other generation in U.S. history.1 On one hand, as of 2018, 40% owned their own homes and 40% of millennial women had children. However, their numbers pale compared to Generation X, among which 45% owned their homes and 53% of women had children at the same age as today’s millennials.3 We all know that the road to success is frequently uneven. The recent pandemic has had a varying effect on young adults.

Diversifying your retirement assets among a variety of vehicles and alternatives—both insurance and investment oriented, depending on what is appropriate for your situation—may offer you a better chance of meeting your retirement income goals throughout your lifespan. We help our clients with problems sometimes associated with retirement such as stopping spend down and avoiding probate. In doing so we leverage Medicare long term care as well as risk management designed to help accomplish those goals.

When searching for Fresno financial advisors, look no further than Soutas Financial & Insurance Solutions Inc. your Fresno financial advisor is committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment strategies that focus on Asset Protection, Long-Term Care Strategies, Legacy Planning Tax-Efficient Strategies, IRA, 401(k) & 403(b) Rollovers, Life Insurance, Annuities, Medicare, we can help you develop an overall retirement income strategy specific to you and your family. We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!

Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Soutas Financial & Insurance Solutions, Inc. are not affiliated companies. California Insurance License # OK48173

Other Fresno Financial Advisor Articles 

Soutas Financial & Insurance Solutions Inc. 
333 W. Shaw Avenue Suite 106
Fresno, CA 93704 
(559) 230-1648 
Soutas.com 

1 Andrew Van Dam. The Washington Post. June 5, 2020. “The unluckiest generation in U.S. history.” https://www.washingtonpost.com/business/2020/05/27/millennial-recession-covid/. Accessed Oct. 5, 2020.

2 Richard Pew. Pew Research. April 28, 2020. “Millennials overtake Baby Boomers as America’s largest generation.” https://www.pewresearch.org/fact-tank/2020/04/28/millennials-overtake-baby-boomers-as-americas-largest-generation/. Accessed Oct. 5, 2020.

3 Kathy Koch. EY. March 4, 2020. “The Millennial Economy 2018.” https://www.ey.com/en_us/tax/the-millennial-economy-2018. Accessed Oct. 5, 2020.

4 Hillary Hoffower. Business Insider. Feb. 6, 2020. “How the American millennial is overcoming debt, the dollar, and the economy they were handed.” https://www.businessinsider.com/millennials-great-recession-student-debt-affordability-crisis-2020-1. Accessed Oct. 5, 2020.

5 Kathy Koch. EY. March 4, 2020. “The Millennial Economy 2018.” https://www.ey.com/en_us/tax/the-millennial-economy-2018. Accessed Oct. 5, 2020.

6 Realtor Magazine. Aug. 31, 2020. “Millennials Are Fueling Housing’s Rebound.” https://magazine.realtor/daily-news/2020/08/31/millennials-are-fueling-housing-s-rebound. Accessed Oct. 5, 2020.

7 Laura Bogart. Buzzfeed News. Sept. 28, 2020. “Millennials Are Trying To Shake The Stigma Of Moving Back In With Their Parents.” https://www.buzzfeednews.com/article/laurabogart/millennials-moving-back-in-with-their-parents-adulting?bftwnews&utm_term=4ldqpgc#4ldqpgc. Accessed Oct. 5, 2020.

8 Olivia Rockeman. Bloomberg. Oct. 1, 2020. “Free to Work Remotely, Young Americans Are Covid Road Tripping.” https://www.bloomberg.com/news/articles/2020-10-01/covid-news-remote-work-lets-young-americans-take-road-trips?sref=PJUU2CLn. Accessed Oct. 5, 2020.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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