I was recently asked to provide some financial advice for my future Millennial and GenZ clients. Here it is:
"For my Millennial and GenZ clients, one thing is for sure. Right now you have time on your side. Thus, my goal for you is to start saving as soon as possible to take advantage of the power of compounding interest. To the extent you can get a company match on your 401(k) account, take it. My second goal is to get you saving more. By increasing the amount you are saving, and living within your means, you will be well-positioned to reach retirement with a significant nest egg. (It's a long way off, but it's coming.) Since we know that it is difficult to beat the markets over time, I recommend that my clients invest their savings (taxable, retirement, etc) in index-oriented mutual funds and ETFs. Both options are very low cost which helps keep more of your money invested across time and gives you the best chance to perform in-line with the markets. There are also many ESG and SRI ETFs available to help you invest in line with your values and not sacrifice performance. Finally, work with a financial professional (CFA, CFP, etc.) to develop a plan that helps you achieve your goals. This is a great investment in your family's future."