Episode 264 – It’s hard to believe, but the oldest millennials are already approaching middle age. What makes them different from a financial point of view?

Hello this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, we take a look back at one of our favorite previous episodes, five important financial truths about millennials.

It may seem hard to believe, but the oldest group of millennials, defined as anyone born between 1980 and 1995, has already turned 40.  A recent study by The Natixis Center for Investor Insight provides some valuable insight as to how millennials see the world.

The Natixis Center for Investor Insight is a global research initiative based in Boston.  It focuses on the critical issues shaping today’s investment landscape. Their study—covering over 7,000 millennial investors with at least $100,000 in investable assets—pointed out that things have changed significantly in the last few years.  Nowadays, millennials are starting families, building careers, growing businesses and in some cases, running global corporations.

The report looks at how millennials have adapted to a changing financial landscape, and how they’re setting a new standard for investing.

Here, in order, are the five new truths the study outlines.

With all these new responsibilities comes an increased need for family protection.  Life insurance is one place where millennials tend to lag their older counterparts.  A 2021 survey by LIMRA found that only 49% of millennials have life insurance.

But what kind of insurance works best?  If they have any insurance at all, term insurance is the most popular choice.  But the problem with term insurance is that it eventually disappears.

Kevin Wark, a tax consultant for the Conference for Advanced Life Underwriting, has an interesting take. ““What I’ve found with friends and clients is that they wish — when they’re in their 50s — that they had bought more permanent protection.”  So while term coverage may work well when you’re young, the need is likely to be permanent.

Your Security Mutual Life insurance advisor can help you sort through your options and get the process started.  Your advisor will assemble your team and coordinate with your attorney and tax professional to review your situation and to determine the plan and strategies that are appropriate for you and your family.

It may be hard to believe, but the oldest millennials are already approaching middle age.  And while they’re facing many of the same challenges as their older counterparts, they are coming up with their own unique solutions, ESG investing being just one example.  As the report states “Millennials get a bad rap.  They’re not 20-something hipsters obsessed with avo-toast and Instagramable experiences anymore.”

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 The information presented is designed to provide general information regarding the subject matter covered.  It is not to serve at legal, tax or other financial advice related to individual situations, because each person’s legal, tax and financial situation is different.  Specific advice needs to be tailored to your situation.  Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation

 To help reach your goals, you need a skilled professional by your side.  Contact your local Security Mutual life insurance advisor today.  As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives.  For more information, visit us at SMLNY.com/SMLPodcast.  If you’ve enjoyed this podcast, tell your friends about it.  And be sure to give us a five-star review.  And check us out on LinkedIn, YouTube and Twitter.  Thanks for listening, and we’ll talk to you next time.

 The applicability of any strategy discussed is dependent upon the particular facts and circumstances.  Results may vary, and products and services discussed may not appropriate for all situations.  Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently.  We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances.  Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York.  Product availability and features may vary by state.