Most young adults don’t have the one thing they might need the most in order to become financially successful—a good financial advisor. A survey found that only 11% of young adults meet with a financial advisor on the regular, while 31% use an app or robo-advisor.
However, the best kind of financial advisor for young adults is one that is best-attuned to their specific needs. Here’s what all young adults should look for when choosing a financial advisor:
Most people don’t exactly enjoy the idea of meeting with an advisor who treats them more like a child than the adult and peer that they are. That’s why it’s important to find a financial advisor you can have a good rapport with.
Finding an advisor who is available after-hours and during the weekend can also be a big plus, especially since most young adults can’t get time off during the day to get help for any financial worries they might have.
You don’t want a financial advisor who feeds the same information to every client without listening to the unique financial issues they might face.
You’ll want to find a financial advisor who will truly listen to you and can put together both a long and short-term plan that will best suit your personal financial needs.
You might ask around for personal recommendations when you first seek out a financial advisor, but you should still take the time to explore whether the advisor has the right background, training, and education.
This means finding a financial advisor with a Certified Financial Planner (CFP) designation. This designation is earned through a rigorous process that includes educational courses, exams, and experience.
While we touched on this earlier, it needs to be mentioned again. Young adults face different issues than the generation before them, and it needs to absolutely be taken into account.
On average, young adults owe $34,504 in student debt, which is the third-highest out of other generations, while 62% also live paycheck-to-paycheck.
Homeownership is also lower for young adults, 8% lower than it was for their grandparents or parents when they were the same age.
It is extremely important to find a financial advisor who is able to understand your financial goals and how they might differ from those of your parents.