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Episode 7: Biggest Financial Mistakes by Generation (Gen Z to Boomers) — And How to Fix Them Now
11 Plays4 days ago
Every generation faces unique financial challenges—but what are the biggest money mistakes they keep making? In this episode of The Future of Finance, financial experts Marissa Wood and Lisa Green reveal the top financial pitfalls across Baby Boomers, Gen X, Millennials, and Gen Z—and share the exact strategies to avoid them.
From ignoring long-term care to overspending on credit cards, this episode breaks down real-life examples, practical tools, and actionable tips to help you take control of your financial future—no matter your age.
🎯 Topics Covered:
- Long-term care & estate planning
- Retirement readiness by generation
- Prioritizing your kids vs. your own future
- Credit card debt & Gen Z struggles
- How to start investing (even with little money)
- Smart tax-free retirement strategies
📌 Ready to take action? Visit union-financial.com to book a free consultation today.
👥 For one-on-one planning with Marissa or Lisa: https://www.union-financial.com/
➡️ Phone • Zoom • In-person available
⏱️ Timestamps:
00:00 – Intro: Why Financial Mistakes Differ By Generation
02:00 – Baby Boomers’ #1 Mistake: No Long-Term Care Planning
04:30 – How Estate Planning & Annuities Can Help Boomers
08:00 – Why Boomers Must Introduce Their Financial Advisor to Family
11:00 – Gen X’s Mistake: Prioritizing Kids Over Their Own Retirement
13:00 – The Cost of Withdrawing from a 401(k) Too Early
15:30 – Maxing Out Retirement Plans the Right Way
18:00 – Millennials’ Mistake: Delaying Investing
20:30 – Understanding Dollar Cost Averaging for Beginners
22:00 – Why Roth IRAs & IULs Are Crucial for Millennials
26:30 – Budgeting, Emergency Funds & Spending Habits
28:30 – Gen Z’s Pitfall: Credit Cards & Instant Gratification
31:30 – Why Gen Z Should Start a Roth IRA Now
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Transcript
Introduction of Hosts and Theme
00:00:09
Speaker
Hi, everyone. Welcome back to the Future of Finance podcast. I'm your host, Marissa Wood. And today I'm joined with business partner, Lisa Green. Thanks for having me back.
00:00:20
Speaker
Thanks for joining. This is your third episode now. So you know you're getting the hang of this podcasting thing. am. I was just reminded it's my
Addressing Generational Financial Mistakes
00:00:27
Speaker
third. Yeah. And so today, me and Lisa are going to speak about the biggest financial mistake that each generation is making.
00:00:34
Speaker
And when we were thinking about you know what topic we wanted to cover today, We've realized that you know not only are we two generations that are running union financial services, but we work with clients from every generation, all the way from you know those that are 20 years old just getting started to those that are planning their legacy so and everything in between. true.
00:00:58
Speaker
And we're we're lucky to do that. And because we are from different generations, it makes our clients feel a little bit more connected to both of us. So we're we're lucky in that respect.
00:01:10
Speaker
Yeah. And I mean, while each generation has amazing aspects about it, they all do have some common mistakes that we see people making. and you know, the strategies and the planning that we do for each person should be customized to where they're at in life.
00:01:29
Speaker
And so we're goingnna we're going to go through that today. And, you know, I think our listeners are going to be excited to hear what their generation's biggest mistake is and maybe some strategies that they can implement themselves.
00:01:41
Speaker
That's our goal here. We just want to help them out along the way and maybe connect with them in such a way where they're thinking, Well, I think I do need that in my portfolio.
00:01:51
Speaker
Sure. You know, it's very important to work with a financial advisor. This is ah this is a tough road to do on your own. There's so many different variables and so many different options that you may or may not know.
00:02:04
Speaker
So hopefully we can give you some information today.
Boomers' Financial Strategies
00:02:07
Speaker
Yeah, absolutely. So we're going to start with your generation, the baby boomers. The infamous boomers. Yeah. Right. There's a lot of us.
00:02:17
Speaker
Yeah. And so I'll let you take that because I think you understand what the baby boomers are going through a little bit more. and And ultimately, you know, you've worked with hundreds of clients that are approaching or in retirement in that baby boomer era. And so what would you say would be the biggest mistake that they're making?
00:02:36
Speaker
The experts are saying the biggest mistake that the boomers are making is not planning for long-term care, not putting aside those finances for an extended care event, because if that comes up, it can literally drain your entire financial plan.
00:02:58
Speaker
So we do want to talk about that. We did discuss it a little bit in episode one on some investments that have extended care features, but we're going to dig into it a little bit today.
00:03:12
Speaker
We're going to skim the surface because there are some Not necessarily mistakes, but there are some strategies that boomers can use in order to have that portfolio where they want it to be and where it should be.
00:03:27
Speaker
They've worked a long time. They've accumulated ah good amount of wealth. The difficult part is distribution and having that safety net so that nothing will derail your plan.
00:03:43
Speaker
Yeah, I mean, I think it's
Gen X and Retirement Savings Challenges
00:03:44
Speaker
everyone's worst nightmare to get to retirement with a nice lump sum of money and then either themselves or their spouse has an extended care event, chronic illness event that decimates those assets that they've worked their whole life to save.
00:04:02
Speaker
That's terrible and it's common. We've seen it happen. Yeah. We've seen it happen. But the good thing is there's a solution. So the first strategy that I believe that boomers should address is estate planning.
00:04:17
Speaker
They need to have their ducks in a row. They need to have their will, their trust if necessary. They need to just have that security of checking off those boxes.
00:04:30
Speaker
It's very important to have an estate plan. Things happen and all of a sudden time gets away and people realize, oh, I never did that.
00:04:42
Speaker
Try to do that soon, sooner rather than later. You know, because there's ways that that they can gift their money also. Strategic gifting. That's a nice tax break. So let's look into that option.
00:04:56
Speaker
To their heirs or charity. Exactly. yeah You know, they can use those so RMDs that they're forced to take. for a charitable distribution. Save on taxes on that.
00:05:08
Speaker
That's good. The other thing that is very important is we need to protect a
Improving Gen X Financial Security
00:05:15
Speaker
portion of our assets from market volatility.
00:05:21
Speaker
We are in very interesting circumstances right now. Yes, we are. And the way we can protect those assets, a portion, is with a fixed indexed annuity.
00:05:33
Speaker
FIAs absolutely deserve a place in baby boomers portfolio. There is no ifs, ands, or buts. You need to protect a portion of those assets that you worked so hard for from market volatility.
00:05:50
Speaker
You are no longer working probably. So you do need to have that safety and security. Mm-hmm. And the good thing, and I'll circle back to episode one, the good thing about those fixed indexed annuities is a lot of them have a plan for extended care built inside.
00:06:12
Speaker
Not talking about just a standalone long-term care plan. I'm talking about an investment that has extended care features right inside and it acts like a safety net. Mm-hmm.
00:06:24
Speaker
If you ever need it, it's there. If you don't, it's still an invested asset. That's growing. Oh, it's growing and it's got protection.
00:06:36
Speaker
When I say that's the best of a lot of worlds, I truly believe that. And I think that every baby boomer should have that in the their portfolio.
00:06:48
Speaker
They need it. Absolutely. Their children need it. For them. Absolutely. Because if you if you don't have that, you're subjecting your family to possibly putting their lives on hold, taking care of you financially, financially.
00:07:09
Speaker
contributing to that type of a ah of a situation. It's pretty, it can be pretty devastating, as you said earlier. But working with a financial advisor, when we tell our boomer clients that this is available to them, I'm hard pressed to find someone that doesn't want it.
00:07:29
Speaker
Because how can anyone say with certainty, I will never have a chronic illness or a long-term care event? Right. None of us know. Right. And longevity plays a factor in that as well.
00:07:40
Speaker
We don't know. And we need to protect ourselves, our assets that we work so hard for, and our family. And it's an easy fix. Absolutely. Yeah. It's a pleasure to
Millennials' Investment Hesitation
00:07:52
Speaker
be able to share that information.
00:07:54
Speaker
So the last thing that is very important, too, for baby boomers is to introduce your financial advisor to their family.
00:08:05
Speaker
let Let's meet your children. Let's meet your beneficiaries. Let's meet your sisters or or whoever may be the next of kin. Let's meet them so that they know who we are, how we can be contacted in the event that that something happens.
00:08:22
Speaker
You know, boomers like to think that they're all still 50. Then all of a sudden we say, we can collect Medicare? How did that happen? You know, we we do we do have that tendency to just think that we're still young.
00:08:36
Speaker
We're not. You know, we're on we're in the twilight years. and And we can have those twilight years be as wonderful as we envisioned.
00:08:48
Speaker
You know, or they can be a little stressful. But if you work with a financial advisor, even if it is a little late in your life, let's have a conversation. have Talk to your advisor.
00:08:59
Speaker
See what's available for you. Try to make those retirement years as seamless and as fun as you had thought they would be. Yeah, that's our job.
00:09:09
Speaker
It's our job. To help people spend their money without running out. um And yeah, that's very smart about having us meet our clients, beneficiaries and family members, because we can be there during that difficult time to help them with the paperwork and to help them crunch the numbers. I mean, I've seen you do it.
00:09:30
Speaker
The last 10 years that we've been working together, I've seen you process countless death benefit claim forms, go to their house, ah you know, be there during that difficult time. Even, um you know, one of our dearest clients, I know that you've helped her when her parents went into education.
00:09:49
Speaker
A chronic illness event and needed the funds and you helped them efficiently distribute them. Right. And, you know, that probably meant the world to her.
00:10:01
Speaker
But had you not met them They may not have They may not have known that that was something you can help them with. Exactly. yeah Exactly. So it is, even if it's just a phone call or an email communication, a lot of our clients, we tell them, here here is our business card. Please give this to your children or whoever may be that beneficiary.
00:10:24
Speaker
Please let them know that we are here for them in the event when something may happen. you know so So it's our our pleasure working with clients. through their accumulation years. And unfortunately, in the end, we may have to work with their family members. But that's part of our job.
00:10:43
Speaker
Yeah. Mm-hmm. So the boomer's biggest mistake is overlooking that extended care, long-term care planning inside of that portfolio. And so, you know, to any boomers that are listening to this, if you're not sure if you have that checked off, let's have a conversation. Mm-hmm.
00:11:01
Speaker
it's It's definitely a worthwhile conversation. And I also want to remind boomers that... Retirement is not an age. They may think that at 65, they can retire. Retirement is a number.
00:11:16
Speaker
You need to know that that number coincides with what your expenses are, what your goals are. Just because your your parents retired in their 60s, early 60s, doesn't mean that that's right for you.
00:11:29
Speaker
Once again, have that conversation with an advisor. It makes sense. It's math. Yeah. It's all about math. That is true. That is true. So then the generation after baby boomers is considered Gen X. um Now, you know, that's – they're the current sandwich generation, we like to call them. And, you know, for anyone that doesn't know what that means, it means that oftentimes they
Investment Advice for Millennials
00:11:55
Speaker
are taking care of children and aging parents.
00:11:58
Speaker
You know, whether that be financially or just physically, they're kind of being pulled in two directions, which, you know, wonderful that they still have their parents and the next generation.
00:12:10
Speaker
But that can be stressful mentally, financially, um which kind of brings us to the mistake that we feel as though Gen X is making. Yeah, that Gen X does have a lot on their plate.
00:12:23
Speaker
Sandwich generation, you know, no pun intended, but yeah they do have a lot on their plate. yeah and and they're stressed out and they're working hard and they're trying to take care of their kids, the problem is that we see is they prioritize their children's needs before their own.
00:12:44
Speaker
The reason I say that is we see a lot of Gen Xers withdrawing from their 401k to pay for their kids' college as opposed to letting that child get a loan.
00:12:56
Speaker
Now, when you think about the the numbers there, once again, it's math. So if they withdraw from their 401k prior to 59 and a half, they are immediately hit with a 10% penalty.
00:13:10
Speaker
that And then they're going to be hit with a 20% tax. So there is that 401k. immediately going away from that four ah one k wow And is that a great strategy to use for college?
00:13:27
Speaker
No. Is that a great strategy to pay for a child's wedding? No. That 401k is there for their retirement. We see that mistake a lot with that with the Gen Xers. And and i think their heart's in the right place. it is. I mean, how wonderful you want to help your kid out.
00:13:44
Speaker
but It is. But you're never going to be able to retire if you do that. No. No, they're never. And and that 401k is not a checking account. That is a retirement savings account.
00:13:56
Speaker
And hopefully they've been working long enough where they have a nice balance in there. But that is for retirement. And so there needs to be other options. they're That's usually a quick solution. Oh, I'll just withdraw from my 401k.
00:14:11
Speaker
Not a great idea. Yeah. So, you know, managing debt properly is so important. You know, student loans and mortgages are considered really good debt because the interest rates are relatively low compared to credit cards or, you know, getting hit with 30% charges from withdrawing from retirement accounts.
00:14:33
Speaker
And then, you know, it's okay if your child does have a little bit of a student loan. It is. Like you said earlier, the heart their heart is in the right place.
00:14:45
Speaker
But let's be practical. You've raised your child to be independent.
Gen Z's Credit Card Use
00:14:50
Speaker
If that student comes out of college with a loan, that's fine. The rest of the generations have had to handle that as well.
00:14:58
Speaker
So let's prioritize that. Our, as a Gen X, let's prioritize ourselves while taking care of our family. We can do that.
00:15:10
Speaker
It doesn't have to be all or nothing. You know, and the other thing, too, is Gen Xers, may they may have a high mortgage. Well, look into when the rates go lower. Look into refinancing that.
00:15:24
Speaker
Look into something that's a better solution. Maybe you'll have more cash on hand at that point. To invest. To invest. Their future is important as well. As I said, I feel as though boomers did a great job saving Gen Xers, not so much. You know, not not as not as well as they should have saved.
00:15:46
Speaker
They're still working, so there's still time. So what they need to do is max out that 401k contribution with the company match. So if the employer's matching 5%, you should definitely put 5%. should definitely put 5%.
00:16:03
Speaker
And there is another problem that I see that they do. They tend to just let the employer pay into that 401k. but That's not a great idea. You need to match that.
00:16:15
Speaker
And you need to be able to live without that... thousand dollars here. You can do it, but there needs to be a little discipline. And, you know, once again, financial strategies are emotional.
00:16:30
Speaker
They're about discipline. They're about sometimes sacrificing a little bit, but you can do it now for your future. Yeah. So Gen Xers, they, you know, the the best thing that they can do for their kids is to be financial financially stable themselves.
00:16:50
Speaker
That's powerful. Right? You want to always do things for your kids. Well, take care of your finances now so that your kids don't have to take care of you later. Yeah. Be able to retire yourselves.
00:17:03
Speaker
Have guaranteed income in retirement. Have a plan for long-term care. You know, you can start laying these foundations in your early fifty s right And then your children will not have to worry about you, which is really an amazing gift to give your kids, I think. It is.
00:17:22
Speaker
Yeah. And it's not too early. Even though we talk about, you know, guaranteed income a little later in life, there's a conversation to be had with these Gen Xers about guaranteed income, extended care options, just to, as you said, lay the groundwork. Let's have a conversation. Let's let you know what's available to you now.
00:17:44
Speaker
Now in 10 years when you're closer to retirement, you're I'm sure the outlook is going to be a little better. But as as long as you know that there are options, start addressing it.
00:17:58
Speaker
Yeah, and we have great software that, you know, we can sit down with someone and go over what their current expenses and income are, their current asset level, and then project it 15, 20 years. so And, you know, Gen X is is right on that cusp of really needing to see that visual and making the changes now before it's too late.
00:18:19
Speaker
Exactly. And so we can that for people. That's great. Perfect time for them to do that. You're right. Yeah, absolutely. Okay, so the Gen X mistake is prioriti prioritizing children's expenses over saving for retirement themselves.
00:18:34
Speaker
Exactly. that yeah And I think that's really common and and a lot of our listeners will probably see themselves. Yeah, relate to that. But it's not too late to get back on track at all. yeah um Okay. And then the next generation is my generation, the millennials, which I'm kind of right on the cusp of millennial and and Gen Z, but I still am a millennial. And, um
Financial Education for Gen Z
00:18:59
Speaker
you know, the biggest mistake that I see my peers making is waiting too long to start investing.
00:19:05
Speaker
delaying that initial starting of investing because, you know, what we see is people feel like they don't have enough to get started.
00:19:16
Speaker
It's never true. That's never true. It's always a good time to start is today, no matter what you have. And once you get started, how about that light bulb going off?
00:19:28
Speaker
Wow, I can do this. Yeah, the reality is you do not need to be rich to get started. But if you ever want to be rich, you have to get started. That's great. I mean, honestly. That's great advice. Because, you know, there's no amount too small, whether it be, you know, $50 a month, $100 a month.
00:19:44
Speaker
Taking that first step, you're going to start seeing that compounding interest effect. um You know, and that is one of our strategies is to start, number one, and then do it consistently. Right.
00:19:58
Speaker
You know, set up those additions on a monthly or biweekly basis, whether it be into your 401k or an investment that, you know, we can help you set up separate from your company.
00:20:11
Speaker
Adding to your account so that you're taking advantage of dollar cost averaging, which for anyone that doesn't know what dollar cost averaging is, it's when you're buying in on a consistent basis, usually with the same dollar amount,
00:20:27
Speaker
and you're buying different amount of shares every month, depending on where the stock market is that month. Let's say in May, the stock market is up and you add $300 to your account.
00:20:40
Speaker
You might only buy three shares of whatever fund you're investing in. The next month, June, the market is down. Everything's on sale. Everything's cheaper.
00:20:50
Speaker
That same $300 bought you five shares. bought you five shares And so the throughout the course of the year, you're going to have a lower average cost per share than someone that just picked one random day throughout the year.
00:21:05
Speaker
Great advice. Yeah. The other thing that we see with millennials is that defeatist attitude. Mm-hmm. They say, social security is not going to be there for me. I'll never get to have that nest egg that I want.
00:21:18
Speaker
So why don't I just spend it on vacations with my family? Once again, people want family time. Of course you do. And you're working towards saving for those fun times, those vacations. A lot of people love to go on cruises with their families now.
00:21:35
Speaker
That's okay. You can do that. But don't have the attitude where it's never going to matter. So I'm just not going to do it. We have heard that.
00:21:46
Speaker
And that is, that's disheartening. Because if you don't do it, nobody's going to do it for you. Yes, Social Security will still be there. It may look totally different, but some sort of Social Security that you're all paying into is going to be there.
00:22:02
Speaker
You can take those vacations. You can save for retirement. You just need some guidance. I understand the hopeless attitude of millennials a little bit.
00:22:14
Speaker
I mean, we've seen a lot a lot of, you know, financial turmoil, global everything.
00:22:25
Speaker
you know, we won't get into that. But, you know, we've seen a lot in in the start of our working lives. And, you know, inflation has caused the cost of living to be a lot higher than you know previous generations when when they were just getting started. But we also have so much to our advantage. You have resources that that other generations didn't have, they didn't know how to use it. Your generation knows how to use everything that's at their fingertips and you do.
00:23:00
Speaker
And that's great. So let's put that positive spin on it and just once again, get started, be consistent and you will get there.
00:23:14
Speaker
So our goal is to try to talk to those millennials and and under so let them understand This is fine. I can do this. when When that happens, that revelation and that and that light bulb goes on, wow, we are on our way.
00:23:33
Speaker
It's no longer the defeatist attitude. And like you said, no matter what the amount, let's get let's get it going. Let's have that goal. Let's have conversations.
00:23:44
Speaker
Financial world changes daily and things are available daily. And we can help you get to that point that maybe your parents are at. And and you look at that and say, OK, I can do that.
00:24:00
Speaker
It's going to look different. But it's possible. Yeah. Yeah. It should be exciting. And, you know, I think our clients feel the excitement. They do.
00:24:11
Speaker
They do. i mean, the smiles and and and also that sense of accomplishment that I've checked this box off and I am on my way. That's very important.
00:24:23
Speaker
And if couples come in, they feed off of each other with that. It's like we can do this. you know and then And then, of course, we talk about the kids. And once again, big priority.
00:24:34
Speaker
But we can have a nice plan that will give you time with your kids, give you those vacations, maybe set something aside for their education, but still have the number one and two priority being that those parents of that couple.
00:24:51
Speaker
yeah So it's it's a great place to be. Yeah. I mean, I personally love working with millennials, not only because i relate to them, but also because if we lay the right foundation as millennials with investing,
00:25:05
Speaker
That Gen X biggest problem, baby boomer biggest problem won't ever happen because we're already going to be planning for it. um And we're not going to really need to make many changes. So true.
00:25:15
Speaker
You know, um the other thing that is important as millennials, a good strategy is to take advantage of tax free accounts. such as the Roth ira fixed index universal life insurance, start contributing to those now because they all grow into a tax-free asset that you can access in the future.
00:25:38
Speaker
And who doesn't want a tax-free asset and tax-free income? I don't know anyone that wouldn't want that. Because you do not know what tax rates are going to be exactly when you retire. Exactly.
00:25:52
Speaker
And when you need all of your assets to to live on, let's think about it. Wow, what's it going to look like in 30, 35 years? Take care of it now and you won't have to worry about that.
00:26:03
Speaker
Exactly. It's all about peace of mind. Exactly. And I mean, the the sooner you start with any tax-free account, it's going to be able to grow to a larger amount. And that's our goal. Right.
00:26:14
Speaker
um And then I would say the last strategy that is very important as millennials is to have that emergency fund and to create a budget for your household.
00:26:27
Speaker
They don't like that. No, it's not fun. um you don't want to You don't want to see how much your bills are, but you need to. You need to see if you're living within your means or beyond them.
00:26:38
Speaker
um Obviously, meet those savings goals as well. Budget saving. Budget saving emergency fund. Yeah. um And we have some really good budgeting tips in episode two We go through a sample budget that a lot of young families are finding useful.
00:26:57
Speaker
So I would encourage you to go back to episode two. um But that is important because young families, you know, they're in those working years. They have their children.
00:27:08
Speaker
They're busy. They're busy, but they need to have ah framework for their finances. Right. Because a lot of a lot of millennials just will spend an order on Amazon and and and and then everything starts to snowball.
00:27:24
Speaker
And then they say, well, I can't budget. you know i I need this or I need that. Right. We do have a template that we can send out to people, yeah you know, where you can plug in your own numbers without having to create a whole plan for yourself. Right. Because wants and needs are different things.
00:27:44
Speaker
You need to address those wants and the needs maybe, you know, maybe those needs ah can be checked off a little bit. Well, do I need that great handbag?
00:27:56
Speaker
Maybe I'll check that off and not get it. You know, my needs have to come first. Yeah. And I think that that's a difficult thing for a lot of people, but I think specifically millennials. They're not used to separating the two.
00:28:11
Speaker
That's a good point. That is a good point. Okay. So, yeah, absolutely. Delaying investing, not to your favor, millennials. Got to start now. Got to start.
00:28:23
Speaker
And then the last generation that we want to discuss is Gen z which is, you know, right below me. And they're the first generation that really has never lived without technology.
00:28:35
Speaker
And so they they have a different outlook on life. They're used to things instantly. And that can be good and bad.
00:28:46
Speaker
um i would say, and I think you would agree with me, that the biggest mistake Gen Z is making is overusing credit cards. Absolutely. Racking up that high interest debt. Absolutely. Because it's easy to do. We have Amazon. We have Uber Eats Grubhub and and every other app that it makes it too easy to spend money.
00:29:10
Speaker
Yes. And Gen Z, they – They're an interesting group. They want to be their own boss. We were just discussing that Fortune magazine article.
00:29:22
Speaker
There's a lot of Gen Zers that insist on doing startup companies. Or being an influencer. You know, that that's great temporarily, but sometimes you need to get out there in the world, work for somebody else, and then be your own boss down the road.
00:29:40
Speaker
They want to jump right in. They just think that they should. And maybe it'll work for a short period of time. Hopefully, but it's not going to work for everybody.
00:29:53
Speaker
Yeah, I mean, i admire the entrepreneurial spirit of Gen Z. But yeah, there has to be a little bit of stability in that plan for sure. And the worst thing that you can do for yourself, especially if you're starting a company, is rack up a bunch of high interest debt.
00:30:12
Speaker
with credit cards. You know, our advice would be use credit wisely. Do not buy something that you know you cannot pay off by the end of the month.
00:30:23
Speaker
If you can't, you can't buy it. Sorry. They have to be disciplined. and And that may come with a little bit of time because they are young. As you said, they had access to internet all technology from the very beginning, from when they were small.
00:30:38
Speaker
I was just ah listening to a ah podcast, and that financial expert said – if And he specifically was talking about Gen Z. He said if an 18-year-old, that's a little bit younger maybe, but if an 18-year-old put aside $500 month,
00:31:00
Speaker
By the time they were of retirement age and it was, you know, somewhat invest, you know, invested in a conservative, not necessarily aggressive, they would have $4 million. dollars So people, Gen Zs will say, well, I can't put aside $500 month. Well, how about $250? Mm-hmm.
00:31:15
Speaker
but how about two hundred and fifty I bet you you can. That's $2 million. dollars Yeah, wow. so So when you say those numbers, especially because Gen Z are the youngest generation that we're discussing, when you remind them of those numbers, maybe a little discipline will come in.
00:31:36
Speaker
Maybe a little bit of... Well, I can reach that goal. You know, it's once again, goals and accomplishments, very important. And and it's about your money.
00:31:47
Speaker
and So you need to you need to stress the fact that, and and young people say financial advisor, right? I don't need a financial advisor. Well, maybe you do.
00:31:59
Speaker
Maybe you should have a conversation. Maybe you can't find all the answers on the internet. Maybe that self-directed account can produce better results.
00:32:10
Speaker
You can have input with your financial advisor, but it's what that financial advisor does for a living. They're going to have more knowledge than you, believe it or not. As a Gen Z-er. and And, you know, sometimes we do meet clients that are really well-versed on, you know, picking stocks and investing.
00:32:29
Speaker
But what they lack is the accountability factor. You know, how much should be invested? When is the right time to pull it out? Can I afford this purchase? You know, it's important to have someone that you can bounce ideas off of.
00:32:45
Speaker
Even, you know, even the best golfers in the world have a golf coach. Very good. you know it's i'm saying that because we just watched the masters this weekend but it is true you know you have to have that advocate and and someone that's going to help you make decisions along the way and you're never too young to start that um and so building credit wisely obviously super important Use credit for things that are going to be investments for your future.
00:33:12
Speaker
You know, student loans are good debt. You're building an education. Getting a mortgage is a good debt. You're going to have an asset. Overpaying on cars and credit cards, ah not good debts. Not great.
00:33:26
Speaker
No. No. And that's, ah you know, Gen Zers will come around, but a lot of a lot of them may be very young and and and don't want to put aside money for their future because their future is tomorrow.
00:33:42
Speaker
They are instant gratification. So it's something, it's a goal of ours to get more of those younger clients, to get them on that road and to get them started.
00:33:54
Speaker
Yeah, absolutely. But a conversation is worth a lot. Yeah. And I mean, this was a tip we gave to millennials as well, but Gen Z should absolutely take advantage of the Roth IRA.
00:34:05
Speaker
While they do not need the tax break, because a Roth IRA contributing to it right now doesn't save you on taxes today, but it saves you a ton on taxes in the future. And so, you know, while you're young and not at the peak of your earnings, you contribute to something that, you know, it's not going to give you a tax break now, but it will in the future.
00:34:28
Speaker
um And also, a lot of people don't know, but a Roth IRA, not everyone can contribute to them. Once you get to a certain income level, you are no longer eligible.
00:34:39
Speaker
And so while you're in those leaner income years, take advantage of it, because maybe by the time you get to your 30s and forty s you'll no longer be eligible. Definitely take advantage of it while you're in a lower tax bracket. Yeah.
00:34:52
Speaker
And that can just sit and grow and, you know, have all that interest come out tax free. It's a great, it's a great investment. Yeah. And I mean, our last tip, I wouldn't even say this is just for Gen Z. I think this is for all generations is educate yourself.
00:35:12
Speaker
You know, listen to podcasts, listen to YouTube videos, read articles, ah attend financial workshops and seminars. The educated client feels more confident in making decisions and spending their money because they know they have a plan.
00:35:31
Speaker
And even times like this are very uncertain, let's let's be honest. Let's have a conversation about With whatever generation we're talking about. Have a conversation with a financial planner.
00:35:46
Speaker
It's just a conversation. You can get some great information. You can have some great insight. And maybe, you know, maybe... You have to have a conversation with a few different people.
00:35:59
Speaker
But take advantage of people that do this for a living. You know, we like to say we don't fix our own cars. We don't yeah do our own plumbing. You know, even though you earn money doesn't mean you know what to do with it.
00:36:13
Speaker
Absolutely. Yeah. And I mean, we do recognize the fact that this is important and this is people's money. They really, really care about it. They're going to care about it more than, you know, their water heater install because this is their life savings.
00:36:29
Speaker
But that's why we like to provide education along the way. And so that you're not just blindly trusting in us, which, of course, there's going to have to be trust there, but you also do know what's going on as much as you want.
00:36:41
Speaker
As much as you want. Yeah. As much input as you want. ah Some people like to be totally involved. Other people just say, just do it and I'll meet with you once a year. Yeah. And that's fine too. Yeah.
00:36:54
Speaker
It's all different. Yeah. And I mean, we're living in such uncertain times right now. I think regardless of what generation... We're in Everyone has their own stresses and things that are keeping them up at night financially.
00:37:09
Speaker
um And so I think it's important that they have someone to go to for. You know, what do I do? You know, the market's dropping or, you know, are where are interest rates at? Can I afford this house?
00:37:24
Speaker
You know, every generation really does have their own problems. And that's kind of what we wanted to touch on. And I think, you know, of course, we could go on and on. But sharing a couple strategies and then leaving it more to an individual conversation is important.
00:37:39
Speaker
I agree. Great. Well, thank you so much for coming on to another episode, Lisa. My pleasure. Thank you for asking. Yeah, you always share great information. it is it is an honor to be able to share information.
00:37:52
Speaker
i love doing it, and I love helping people out. As you said, the these funds are people's retirement. This is their life savings. We absolutely respect that and treat it as such.
00:38:04
Speaker
Absolutely. For everyone listening, thank you for tuning in to another episode of the Future of Finance podcast. If you have questions that you would like answered pertaining to your own generation, feel free to go to our website, union-financial.com.
00:38:20
Speaker
You're free to schedule a meeting with either myself or Lisa. We can do a phone call, Zoom meeting, or in person and get your specific questions answered. I'm your host, Marissa Wood, and we look forward to seeing you next time.
00:38:34
Speaker
Investment advisory services offered through Brookstone Capital Management, LLC, a registered investment advisor. BCM and Union Financial Services are independent of each other. Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents.
00:38:49
Speaker
The opinions expressed by Marissa Wood and guests on this show are their own and do not reflect the opinions of this radio station. All statements and opinions expressed are based upon information considered reliable, although it should not be relied upon as such. Any statements or opinions are subject to change without notice. Investments involve risk and otherwise stated are not guaranteed. Past performance cannot be used as an indicator to determine future results. Any strategies mentioned may not be suitable for everyone. Information expressed does not take into account your specific situation or objectives and is not intended as recommendations appropriate for you. Before acting on any information mentioned, please consult with a qualified tax or investment advisor to determine if it's suitable for your specific situation. This program is designed to provide accurate and authoritative information with regard to subject covered. Indexed or fixed index annuities are not designed for short-term investments and may be subject to caps, restrictions, fees, and surrender charge as described in the annuity contract.
00:39:45
Speaker
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00:40:04
Speaker
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