Categories
Investing

How To Grow Wealth In Your 30s

In this article we discuss how to grow wealth in your 30s. In addition, we define what net worth is and show you how to build wealth and improve your personal net worth.

Net Worth Definition

Before providing you with tips on how to grow wealth in your 30s, it is important to understand personal net worth. First, we should define what net worth means. Your net worth is not your income or what you earn. Instead, net worth is your assets minus liabilities. Said differently, personal net worth is everything you own minus everything you owe.

“Net worth is simply what you own minus what you owe. In other words, the total value of your assets minus your debts equals your net worth. For example, if you own a home worth $200,000 and you owe $100,000 on it, you have $200,000 in equity toward your net worth. To calculate your total net worth, add up all the things you own and subtract all the things that you owe money on.” – Dave Ramsey

How to Grow Wealth in Your 30s: The Easy Waymillennial wealth management

In short, if you want to learn how to grow wealth in your 30s, you must build your assets (like house, equities and cash) and shrink your debts (like credit cards, mortgage, etc.).

Net Worth Calculator

If you are wondering what your personal net worth is, there are many online calculators that are free to use. Nerd Wallet has a simple calculator that you can use to estimate what your current net worth is. Learning what your net worth is can give you a starting point to learn how to grow wealth in your 30s.

Obviously, you can also create your own spreadsheet to determine your net worth. In addition, you can simply write down your assets and liabilities on a piece of paper to help figure out your net worth and how to grow wealth in your 30s.

What is a High-Net-Worth Individual?

When people think of high-net-worth individuals, they imagine people like Leonardo DiCaprio (movie star), Elon Musk (inventor and investor) or Donald Trump (real estate tycoon). However, most wealthy people that have a high net worth live a simple, quiet life. The method for how to grow wealth in your 30s is not necessarily glamorous or exciting; In fact, becoming a wealthy requires sacrifice and discipline.

As a result, we’ve developed some guidelines that will show you how to grow wealth in your 30s. If you are able to follow these guidelines, financial success can be in your future.

Pay Off All DebtHow To Get 100 Dollars Fast

Most high-net-worth individuals did not get rich by borrowing money. In fact, most people with a significant net worth avoid debt. They know that when you have debt, money is working against you. As a result, it is important to pay down all your debt prior to taking the next steps. Later, you can make your money work for you, not against.

Create a Consistent Source of Income

Put Aside 10-15% of Your Regular Income for Investment

You don’t have to own your own business or be an entrepreneur to be a millionaire. There are many high-net-worth individuals who are average people who work 9-5 jobs every day, just like you.

One of the keys for how to grow wealth in your 30s is having a consistent source of income. Every month, or each paycheck, they divert 10-15% of their earnings to investment(s). An example would be investing in a 401(k), Investment Retirement Account (IRA) or Real Estate. Year after year, your money will build and work for you to create wealth.

Begin Saving Money

Saving Money teaches you the habit of not spending and allows you to take advantage of opportunities

Saving money is a lost art. However, saving money is one of the secrets of how to grow wealth in your 30s. Historically, people’s lives depended on saving money. If a natural disaster struck or just bad luck, people could fall back on the money they saved to stay alive. Today, life is easier. Credit is widely available to most people and we frequently borrow money for cars, houses and purchases on credit cards.

But, saving money is critical to becoming a high net worth individual for several reasons. First, learning to save money requires that you not spend all your money. Legendary investor, Warren Buffet, famously said that the most important rule of investing is “to not lose money.” So, don’t spend all your money. Instead, save some money. Saving money is an excellent habit to learn.

Second, saving money will give you the confidence to seize opportunities when they arise. When people live paycheck-to-paycheck, they waste their time struggling with bills, instead of focusing on future wealth creation.budgeting tips for beginners

Create a Budget

It’s important to keep track of your money. And a budget helps you achieve that objective. Having a balanced budget means spending less of your paycheck. Preferably, you will have a significant amount of money left over to pay off debt and for investing. In short, everyone should budget, whether you are a large corporation or just one person. In addition, creating a budget is your roadmap for how to grow wealth in your 30s.

There are many budget options online, including spreadsheets, mobile apps and even printable budgets. Check out our “Best Budget Apps” article for more information and recommendations.

Live below your means

High net worth individuals do not spend money on unnecessary expenses, such as eating out, new cars and designer clothing

In many cases, frugal living is the cornerstone of success for high-net-worth individuals and how to grow wealth in your 30s. This simply means spending less than you make. A simple monthly budget can assist you in determining whether you are meeting your goal.

Unfortunately, living frugally is not popular in the 21st century. Popular culture dictates what “normal” consumer behavior looks like. And it’s considered normal to go out and spend money at restaurants, on vacations and the like. In addition, it’s “normal” to buy a big house and drive a new car.

The reality for high-net-worth individuals is that they don’t ascribe to normal behaviors. People with the millionaire mindset only purchase what is needed. They don’t buy new cars or fancy things. As a result, the extra money saved from this frugal behavior is put to work in investments.

Develop a Financial Plan

Once you’ve developed the millionaire mindset, it’s time to create a financial plan. Write down the details of what you want to achieve. If your goal is to own one million dollars in real estate, then plan accordingly. Include details of how you will acquire money to invest and how it will be allocated. In addition, set a timeframe for when you expect to achieve your goal. Your budget will be an addendum to the plan. Finally, review the financial plan frequently and assess your progress.

Develop Good Habits

Good Habits Include Budget Control, Staying the Course, Investment Knowledge and Discipline

Developing millionaire habits is critical on the path to how to grow wealth in your 30s. Once you’ve established your goals and your financial plan, you must implement good habits. Good habits include:

  • Budget Control
  • Staying the Course
  • Investment Knowledge
  • Millionaire Habits and Discipline

Budget control means that you operate under a balanced budget. Spending is controlled so that remaining cash flow is routed toward smart investments. Good investments are critical for converting thousands of dollars into millions of dollars.

Staying the course requires that you consistently repeat what you are doing, so long as you are successful. If something doesn’t work, it can be changed. But the power of earning from compounding interest is continuously investing money.

Being a good investor requires that you continuously educate yourself. You want to learn as much as possible about your investments. You will accrue knowledge and wisdom on different investment strategies over time.

Learning what has worked for other high net worth individuals is the easiest and most secure strategy for success with money. High net worth individuals get up early each morning and focus on their goals. Investing money is a priority to them and their focus is on earning and business. Many successful high net worth individuals make time for self-development activities, such as exercise and meditation. And they make these habits part of their daily ritual.

Invest Early

The sooner you can get started on your millionaire journey, the better. Many high-net-worth individuals credit their success not to windfall earnings, but to incremental investing over long periods. Compounding interest is a powerful tool that can work for you on the road to how to grow wealth in your 30s.

Build Your Income

Maximize Your Income by Starting a Business or a Side Hustle

Once you’ve mastered budgeting and your debt is settled, you want to maximize the money that you earn. You will find that expenses remain almost the same from year to year, but increasing your income can have significant results. Earning more money means that your contribution to your investments will build your wealth more rapidly.

There are many ways that you can improve your income. For example, start a small business out of your home. Explore what you like to do in your spare time and determine if you can make money doing it. For example, photography can be a hobby or a business.

Other sources of income can be part time jobs, weekend work, side hustles or even buying and selling things.

Final Thoughts on How to Grow Wealth in Your 30s

Many High-Net-Worth Individuals Operate a Business, Network and Work with a Financial Team

First, many high-net-worth individuals reach their goal quicker by operating a small business. Owning a small business allows you to control how the company operates and take more profit for the extra labor you put in.

Second, maximize the networking that you do with others. Participate in conferences or just promote contact with like-minded people in your area. The network effect can have positive financial benefits for you. Don’t isolate yourself.

Finally, surround yourself with a financial team. Seek out a respected tax professional, attorney, business coach, etc. Sometimes an ounce of prevention is worth a pound of cure. Staying in good legal standing with state and federal regulations can help you build. In addition, these professionals can save you money in the long term.

These guidelines are the simplest path on how to grow wealth in your 30s. Want to learn more about saving and investing?

Read More:

Ways to Save Money on a Tight Budget

10 Things to Know Before Starting a Budget

The Best Budget App

How to Make $200 Fast

Best Budget Planner

Home Buying Power

Financial Planning Services

Value Investing Books

Wealth Building Cornerstones

Best Investing Books of All Time

How Much Savings You Should Have at 40

Why Saving Money is Important

Debt Elimination

Disclaimer:

It is important to note that Piggy Bank Coins does not provide financial advice. We don’t 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.

Categories
Investing

How To Build Wealth In Your 20s

In this article we discuss how to build wealth in your 20s. In addition, we define what net worth is and show you how to build wealth and improve your personal net worth.

Net Worth Definition

Before providing you with tips on how to build wealth in your 20s, it is important to understand personal net worth. First, we should define what net worth means. Your net worth is not your income or what you earn. Instead, net worth is your assets minus liabilities. Said differently, personal net worth is everything you own minus everything you owe.

“Net worth is simply what you own minus what you owe. In other words, the total value of your assets minus your debts equals your net worth. For example, if you own a home worth $200,000 and you owe $100,000 on it, you have $200,000 in equity toward your net worth. To calculate your total net worth, add up all the things you own and subtract all the things that you owe money on.” – Dave Ramsey

How to Build Wealth in Your 20s: The Easy Waymillennial wealth management

In short, if you want to learn how to build wealth in your 20s, you must build your assets (like house, equities and cash) and shrink your debts (like credit cards, mortgage, etc.).

Net Worth Calculator

If you are wondering what your personal net worth is, there are many online calculators that are free to use. Nerd Wallet has a simple calculator that you can use to estimate what your current net worth is. Learning what your net worth is can give you a starting point to learn how to build wealth in your 20s.

Obviously, you can also create your own spreadsheet to determine your net worth. In addition, you can simply write down your assets and liabilities on a piece of paper to help figure out your net worth and how to build wealth in your 20s.

What is a High-Net-Worth Individual?

When people think of high-net-worth individuals, they imagine people like Leonardo DiCaprio (movie star), Elon Musk (inventor and investor) or Donald Trump (real estate tycoon). However, most wealthy people that have a high net worth live a simple, quiet life. The method for how to build wealth in your 20s is not necessarily glamorous or exciting; In fact, becoming a wealthy requires sacrifice and discipline.

As a result, we’ve developed some guidelines that will show you how to build wealth in your 20s. If you are able to follow these guidelines, financial success can be in your future.

Pay Off All DebtHow To Get 100 Dollars Fast

Most high-net-worth individuals did not get rich by borrowing money. In fact, most people with a significant net worth avoid debt. They know that when you have debt, money is working against you. As a result, it is important to pay down all your debt prior to taking the next steps. Later, you can make your money work for you, not against.

Create a Consistent Source of Income

Put Aside 10-15% of Your Regular Income for Investment

You don’t have to own your own business or be an entrepreneur to be a millionaire. There are many high-net-worth individuals who are average people who work 9-5 jobs every day, just like you.

One of the keys for how to build wealth in your 20s is having a consistent source of income. Every month, or each paycheck, they divert 10-15% of their earnings to investment(s). An example would be investing in a 401(k), Investment Retirement Account (IRA) or Real Estate. Year after year, your money will build and work for you to create wealth.

Begin Saving Money

Saving Money teaches you the habit of not spending and allows you to take advantage of opportunities

Saving money is a lost art. However, saving money is one of the secrets of how to build wealth in your 20s. Historically, people’s lives depended on saving money. If a natural disaster struck or just bad luck, people could fall back on the money they saved to stay alive. Today, life is easier. Credit is widely available to most people and we frequently borrow money for cars, houses and purchases on credit cards.

But, saving money is critical to becoming a high net worth individual for several reasons. First, learning to save money requires that you not spend all your money. Legendary investor, Warren Buffet, famously said that the most important rule of investing is “to not lose money.” So, don’t spend all your money. Instead, save some money. Saving money is an excellent habit to learn.

Second, saving money will give you the confidence to seize opportunities when they arise. When people live paycheck-to-paycheck, they waste their time struggling with bills, instead of focusing on future wealth creation.budgeting tips for beginners

Create a Budget

It’s important to keep track of your money. And a budget helps you achieve that objective. Having a balanced budget means spending less of your paycheck. Preferably, you will have a significant amount of money left over to pay off debt and for investing. In short, everyone should budget, whether you are a large corporation or just one person. In addition, creating a budget is your roadmap for how to build wealth in your 20s.

There are many budget options online, including spreadsheets, mobile apps and even printable budgets. Check out our “Best Budget Apps” article for more information and recommendations.

Live below your means

High net worth individuals do not spend money on unnecessary expenses, such as eating out, new cars and designer clothing

In many cases, frugal living is the cornerstone of success for high-net-worth individuals and how to build wealth in your 20s. This simply means spending less than you make. A simple monthly budget can assist you in determining whether you are meeting your goal.

Unfortunately, living frugally is not popular in the 21st century. Popular culture dictates what “normal” consumer behavior looks like. And it’s considered normal to go out and spend money at restaurants, on vacations and the like. In addition, it’s “normal” to buy a big house and drive a new car.

The reality for high-net-worth individuals is that they don’t ascribe to normal behaviors. People with the millionaire mindset only purchase what is needed. They don’t buy new cars or fancy things. As a result, the extra money saved from this frugal behavior is put to work in investments.

Develop a Financial Plan

Once you’ve developed the millionaire mindset, it’s time to create a financial plan. Write down the details of what you want to achieve. If your goal is to own one million dollars in real estate, then plan accordingly. Include details of how you will acquire money to invest and how it will be allocated. In addition, set a timeframe for when you expect to achieve your goal. Your budget will be an addendum to the plan. Finally, review the financial plan frequently and assess your progress.

Develop Good Habits

Good Habits Include Budget Control, Staying the Course, Investment Knowledge and Discipline

Developing millionaire habits is critical on the path to how to build wealth in your 20s. Once you’ve established your goals and your financial plan, you must implement good habits. Good habits include:

  • Budget Control
  • Staying the Course
  • Investment Knowledge
  • Millionaire Habits and Discipline

Budget control means that you operate under a balanced budget. Spending is controlled so that remaining cash flow is routed toward smart investments. Good investments are critical for converting thousands of dollars into millions of dollars.

Staying the course requires that you consistently repeat what you are doing, so long as you are successful. If something doesn’t work, it can be changed. But the power of earning from compounding interest is continuously investing money.

Being a good investor requires that you continuously educate yourself. You want to learn as much as possible about your investments. You will accrue knowledge and wisdom on different investment strategies over time.

Learning what has worked for other high net worth individuals is the easiest and most secure strategy for success with money. High net worth individuals get up early each morning and focus on their goals. Investing money is a priority to them and their focus is on earning and business. Many successful high net worth individuals make time for self-development activities, such as exercise and meditation. And they make these habits part of their daily ritual.

Invest EarlyDay Trading Options

The sooner you can get started on your millionaire journey, the better. Many high-net-worth individuals credit their success not to windfall earnings, but to incremental investing over long periods. Compounding interest is a powerful tool that can work for you on the road to how to build wealth in your 20s.

Build Your Income

Maximize Your Income by Starting a Business or a Side Hustle

Once you’ve mastered budgeting and your debt is settled, you want to maximize the money that you earn. You will find that expenses remain almost the same from year to year, but increasing your income can have significant results. Earning more money means that your contribution to your investments will build your wealth more rapidly.

There are many ways that you can improve your income. For example, start a small business out of your home. Explore what you like to do in your spare time and determine if you can make money doing it. For example, photography can be a hobby or a business.

Other sources of income can be part time jobs, weekend work, side hustles or even buying and selling things.

Final Thoughts on How to Build Wealth in Your 20s

Many High-Net-Worth Individuals Operate a Business, Network and Work with a Financial Team

First, many high-net-worth individuals reach their goal quicker by operating a small business. Owning a small business allows you to control how the company operates and take more profit for the extra labor you put in.

Second, maximize the networking that you do with others. Participate in conferences or just promote contact with like-minded people in your area. The network effect can have positive financial benefits for you. Don’t isolate yourself.

Finally, surround yourself with a financial team. Seek out a respected tax professional, attorney, business coach, etc. Sometimes an ounce of prevention is worth a pound of cure. Staying in good legal standing with state and federal regulations can help you build. In addition, these professionals can save you money in the long term.

These guidelines are the simplest path on how to build wealth in your 20s. Want to learn more about saving and investing?

Read More:

Ways to Save Money on a Tight Budget

10 Things to Know Before Starting a Budget

The Best Budget App

How to Make $200 Fast

Best Budget Planner

Home Buying Power

Financial Planning Services

Value Investing Books

Wealth Building Cornerstones

Best Investing Books of All Time

How Much Savings You Should Have at 40

Why Saving Money is Important

Debt Elimination

Disclaimer:

It is important to note that Piggy Bank Coins does not provide financial advice. We don’t 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.

Categories
Investing

Millennial Wealth Management

We will discuss millennial wealth 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.”

Are You a Millennial?

According to the Pew Research Group, 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 and they came after Generation X.

Achieving Millennial 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’s much simpler and easier to depend on the expertise of a wealth advisor to accomplish financial goals. Contacting a professional wealth advisor simplify millennial wealth management for you. More on that later.millennial money management

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 Millennial Wealth 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 Averagingshort term financial goals

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 millennial wealth 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 millennial wealth 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.

Millennial Wealth Management

Retain Assets and Grow Wealth for Future Generations

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 millennial wealth management for you.

Whether your family is new to investing or you are simply managing assets passed down through generations, millennial wealth management is important. Millennial wealth 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 millennial wealth management correctly could result in reduction or loss of assets and wealth to taxes, inflation or even investment mismanagement.

When approaching millennial wealth 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 millennial wealth 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 millennial wealth 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 Assets

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 millennial wealth 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 millennial wealth 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 millennial wealth 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 For

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.

Millennial Wealth 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

Best Gold Coins to Buy

Wealth Building Cornerstones

Value Investing Books

How Much Savings You Should Have at 40

Disclaimer:

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.