Next Generation Money Management

We will discuss next generation money management for both new and seasoned investors, including how investing works and the basics of managing money. We will also discuss the various terminology for what a wealth manager is. Wealth managers can also be known as “financial planner”, “wealth advisor”, financial advisor” and “wealth manager.”

Which Generation Are You?

According to the Pew Research Group, there are several generations that come after the baby boomers. These relatively new investors should be considering their long-term financial goals for the future. For example, millennials are the group of people born just before the beginning of the year 2000, or the new millennium. In addition, Millennials were born roughly between the years 1981 and 1996. They precede Generation Z (1997-2012) and they came after Generation X (roughly 1965-1980).

Achieving Next Generation Money Management

Navigating the world of investment and finance grows more complicated and difficult each year. Learning how to manage taxes, create wealth, manage investments and estate planning can be a daunting task. It’s much simpler and easier to depend on the expertise of a wealth advisor to accomplish financial goals. Contacting a professional wealth advisor simplify next generation money management for you. More on that later.

Investment Types

There are a number of different types of investments that are available for investors to choose from. Moreover, technology of the 21st century has made it easier than ever to choose many different investment options. For example, global wealth management investments can include things like stocks, bonds and real estate. In addition, there are many new investment opportunities like cryptocurrency and micro investing.

Types of Investments for Next Generation Money Management:

  • Stocks
  • Bonds
  • Mutual Funds
  • Retirement
  • Real Estate Trusts (REITs)
  • Real Estate (Land/Homes)
  • Annuities
  • Precious Metals (Gold, Silver, etc.)
  • Cryptocurrency (Bitcoin)
  • Insurance

Investing 101

Take Control of Personal Finances and Dollar-Cost Averaging

Learning about investing doesn’t have to be complicated. Once you establish your goals and how much money that you want to invest each month, you can then determine what kind of investments you wish to make. However, every adult should learn to budget, save money and pay off debt first. If you have a family, it is critical that you begin planning your financial future.

Many investors use “dollar-cost averaging” as a part of their investment strategy. Dollar-cost averaging is simply dividing up the amount of money you have to invest over a longer time frame. This investment methodology means that you invest the same amount of money each week or month, no matter if the market goes higher or lower. Dollar-cost averaging takes the emotion out of buying stocks.

Learn more about investing in our article, Financial Planning Process.

What is Your Level of Risk?

Active Versus Passive Investing; Aggressive Versus Conservative Investing

First, the major categories of investment include active management or passive management. For example, a portfolio manager can determine what investments are in your fund and make decision for you using passive management; however, active management means that you reserve more control of your investments and perhaps you even use online services to trade individual stocks on a daily basis.

Second, you must determine if you are an aggressive or a conservative investor. Aggressive investing is utilized by those who want to take more risk and capture greater returns. This type of investing is considered acceptable for younger investors and for savvy investors who want to dedicate a small portion of their portfolio to higher risk. Conservative investing is a lower risk style of investing. Returns tend to be lower than the aggressive style, but come with lower risk. This style is best for those that desire lower risk and those who are getting closer to retirement age.

Diversify Investments

One important tool in your next generation money management tool box is to diversify. No one can predict the future to know what investments will do well and which ones will fail. As a result, we can improve our odds of success in investing my diversifying our investments. Diversification of investments means spreading your money over different investment sectors. For example, you may want to have some stocks, bonds, real estate and precious metals in your investment portfolio.

Tax Considerations

Another consideration for next generation money management is how tax is managed. Some investments will inherently have higher tax implications than others. In many cases, timing is important when the asset is sold in determining how it is taxed. The level of taxation of an asset can impact your return on investment. For example, if you purchase a home, fix it up and flip it for a profit, it will be taxed at a higher rate than if you simply bought a home and lived in in for a few years.

Next Generation Money Management

Retain Assets and Grow Wealth for Future Generationsmillennial wealth management

Navigating the world of investment and finance grows more complicated and difficult each year. Learning how to manage taxes, create wealth, manage investments and estate planning can be a daunting task. It is much simpler and easier to depend on the expertise of a wealth advisor to accomplish financial goals. Contacting a professional wealth advisor simplify next generation money management for you.

Whether your family is new to investing or you are simply managing assets passed down through generations, generational money management is important. Next generation money management allows families to not only retain wealth and assets, but also grow their portfolio for future generations.

When wealth is held and passed on through a family, issues such as taxes, legal considerations and investment knowledge must be utilized for maximum efficiency. Failure to navigate next generation money management correctly could result in reduction or loss of assets and wealth to taxes, inflation or even investment mismanagement.

When approaching next generation money management, families should retain the services of a financial advisor who is experienced, knowledgeable and has the family’s best interest at heart. Here are some examples of “financial advisors” that you may encounter when seeking next generation money management.

Wealth Advisor

A wealth advisor is a general term for a person who provides advice to families for how to invest and manage money. There are several terms for money managers who help people manage their money and assets. These terms include “wealth advisor”, financial advisor”, “wealth manager” and “financial planner.” We will discuss the differences between each of these titles and why it matters.

Why Do Families Need a Wealth Advisor?

Navigating the world of next generation money management grows more complicated and difficult each year. Learning how to manage taxes, create wealth, manage investments and estate planning can be a daunting task. It is much simpler and easier to depend on the expertise of a wealth advisor to accomplish financial goals.

Wealth Advisors Are in High Demand

The US Census Bureau data indicates that there are over 73 million retirement-age people in the United States currently. This number will reach a crescendo in 2030 when all baby boomers reach retirement age. This group of retirees will require assistance with managing their wealth and estates. In addition, working-age Americans will also need help with their finances, paying off debt, retirement, and taxes. As a result, it is more important than ever for individuals to take control of their own investments for a secure future.

What is a Wealth Advisor?

A Wealth Advisor Assists High Net Worth Families with Managing Investments and AssetsFinancial Planning and Budgeting

In general, a wealth advisor can be a financial planner or a financial advisor. A wealth advisor may be an expert in the field of finance, with professional certifications and degrees. In contrast, a wealth advisor may also be less experienced.

A wealth advisor can assist individuals, businesses and families with implementation and management of strategies for managing wealth. In many cases, they focus on helping high-net worth clients with things like establishing goals and values, creating a legacy and wise investments.

Some of the topics that a wealth advisor can advise families on include:

  • Investment Strategy
  • Short and Long-term Investment Planning
  • Debt Management
  • Saving and Budgeting
  • Estate Planning
  • Retirement Planning
  • Tax Management
  • Insurance
  • Wealth advisors

Wealth Manager

A subsection of a wealth advisor group, a wealth manager aids high net worth families manage their assets. Moreover, the name is frequently synonymous with wealth advisor or financial advisor. In many cases, a wealth manager offers the same services to clients as a wealth advisor does. However, a wealth manager focuses on wealth management for families.

Typically, a wealth manager deals with high-net-worth individuals and families. The discipline combines several personal finance areas into one group. In addition, the intent of a wealth manager is to grow and preserve individual and family wealth over long periods or generations.

Financial Planner

A Loose Group of Financial Professionals Who Represent Different Industries

“A financial planner is a qualified investment professional who helps individuals and corporations meet their long-term financial objectives. Financial Planners do their work by consulting with clients to analyze their goals, risk tolerance, life or corporate stages and identify a suitable class of investments for them.”–Investopedia

In short, financial planners are a group of individuals from different industries, like banking, insurance, and tax. They help families create a plan for long- and short-term goals. Moreover, financial planners come from different backgrounds and may not have financial expertise like financial advisors or wealth advisors.

Certified Financial Planners (CFP) must study and understand industry accounting and investing principles. Frequently, a CFP must be familiar with software tools and technology related to next generation money management.

Financial Advisor

True Financial Advisors Are Certified Professionals Who Act as Fiduciaries to Clients, Unlike Salesmen

The term financial advisor is one of the broadest terms when describing professionals who give advice regarding money management. They are also sometimes called “investment advisors.” In many cases, the term “financial advisor” is a substitute term for “wealth advisor”, “wealth manager” and “financial planner.” However, there is a difference between the terms.

A financial advisor is considered a true professional in the financial industry. For example, they may be required to pass board exams and have a financial education from an accredited institution of higher learning or university degree. Finally, if the advisor is working with the public at large on issues such as next generation money management, they are required to hold a Series 65 license.

Series 65

The Series 65 license is administered by the Financial Industry Regulatory Authority (FINRA). To pass the Series 65 exam, you must gain expertise in topics such as state and federal securities laws and finance rules. In addition, financial advisors must learn about fiduciary obligations and ethical standards relating to clients.

Another license that some financial advisors acquire is Series 7 Certification. Candidates must past the Series 7 exam to qualify for the certification to work with clients in the next generation money management industry.

“A candidate who passes the Series 7 exam is qualified for the solicitation, purchase and/or sale of all securities products, including corporate securities, municipal fund securities, options, direct participation programs, investment company products and variable contracts.”–FINRA Website

Caveat Regarding Advisors and Planners

Beware of Professionals Who Receive Sales Commissions – You Get What You Pay Forbudgeting tips for beginners

One of the ways in which these professional advisors differentiate themselves is how they receive compensation. Some professionals charge an hourly rate for their time or as a fee in the form of a percentage of the account size, whereas others may receive payment through sales commissions or financial incentives.

Note that commissions or incentives may create conflict with what is in the best interest clients. For example, if your financial planner receives sales commissions on buying/selling stock in your account, he/she may be inclined to more frequently trade stocks in the account. As a result, frequent trading benefits the professional through sales commissions; however, you may be the loser in the end as portfolio performance takes a back seat to trading.

Next Generation Money Management Wrap Up

As you can see, there are several differences among the financial professionals and some of the other terminology used in their industry. Many of these professionals assist people with wealth management strategies, however there are some differences. Hopefully, this understanding helps you navigate the financial advisement world better.

Read More:

Value Investing Books

Retirement Planners

How Much Savings You Should Have at 40

Real Estate Market Predictions

Why Saving Money is Important

The Best Budget App

10 Things to Know Before Starting a Budget

Debt Elimination

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Wealth Building Cornerstones

Value Investing Books

How Much Savings You Should Have at 40


It is important to note that Piggy Bank Coins does not provide financial advice. We do not endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, to help you make the best choice for you.


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