Genyk noted there’s a five-step process that advisors can help younger clients address things like that. First, advisors need to help them take stock of their financial situation – their net worth, personal balance sheet, bank accounts, pensions, real estate, and liabilities, including everything from mortgages and student debt to outstanding credit card balances. Advisors can then help them set a budget to cover household spending, debt repayment, retirement funds, and other expenses.
Advisors can next help younger clients determine their financial goals – whether that’s paying off high-interest debt, such as credit cards, saving for retirement, or paying for children’s tuitions.
Then, they can help their clients create a plan for how much they’re going to save and invest, including RRSP and TFSA contributions, and start implementing it to ensure they meet their goals.
Finally, they should review their plan once a year to see whether they still have the same goals or whether their budget has changed, and anything needs to be readjusted.
Going through this process, millennials may discover their goals and resources don’t align – but they can still meet their goals with some work or other adjustments.
