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ON THE SCENE 26 MIAMI LIVING Millennials and Money: A Risk-Averse Generation How are Millennials different when it comes to managing money and interacting with their advisors? Words by Alex Navarro For many millennials, the Great Recession was a wake-up call. Graduates left campus with limited employment prospects, and others watched as their parents lost their jobs and their homes. The result is a generation of 20- and 30-year-olds who are risk- averse and invest like 75-year-olds. The reality, though, is most people can't just save their way to retirement; they have to invest and take on some risk. In fact, the greater risk for millennials is not investing and not benefiting from long-term growth. When working with millennials, advisors need to balance their clients' concerns about investing with goals-based planning to identify what they want to achieve. By examining a few traits of millennials, advisors can help put young savers on a path to achieving their financial well-being. First-timers Millennials are experiencing a number of firsts: buying their first homes, getting married or having their first child. This is often a time when an individual's goals become more defined as they need to plan for and manage their "firsts," whether through pre-marital estate planning, drafting their first will or setting up a college-savings plan. These initial decisions instill good financial planning habits within young families and individuals that will pay off in the long run. Education focused When faced with few job prospects, many millennials extended their education, making this generation the most educated of all. Millennials want to understand how their money is being managed, which may require an advisor to spend more time explaining their recommendations. In some cases, an advisor will need to start with foundational skills like budgeting, cash flow and the importance of good credit, before discussing more sophisticated topics like asset allocation, cost basis and capital gains. Basing the lessons on an individual's circumstances will help drive home the points and increase their comfort with managing their finances. Technology and accessibility Millennials want to be able to access their financial advisor during non-business hours, through emails and texts, as well as the phone. They also want access to their account information from their smartphone, tablet and computer. Millennials grew up with technology and are more comfortable using it than others generations. Web-based financial planning tools like SunTrust SummitView® provide users a real-time snapshot of their financial picture and the ability to dig into the details, if they want, anywhere at any time. A more personal relationship Many younger people want to bring their advisor into their circle of friends. They share personal aspects of their lives and even invite them to weddings and baby showers. Some advisors attend concerts and sporting events with clients and build a personal relationship. Having a deeper relationship with a client helps an advisor better understand their client's responsibilities, interests, and short- and long- term goals, allowing the advisor to help them make smart financial decisions. The way millennials approach their money is often not the same as their parents and grandparents. Collaboration with an advisor who understands millennials' perspective, needs and goals is essential to put them on a path to financial success. By helping and educating millennials through "firsts," working with them in ways they are comfortable and forging a strong relationship, an advisor can help even the most risk-averse millennial achieve their financial goals. ML Alex Navarro is a Senior Vice President and Private Financial Advisor with SunTrust Private Wealth Management and SunTrust Investment Services, Inc. You can reach Alex at Alex.Navarro@SunTrust.com or 305-868-2635. Investment and Insurance Products: •Are not FDIC or any other Government Agency Insured •Are not Bank Guaranteed •May Lose Value SunTrust Private Wealth Management is a marketing name used by SunTrust Banks, Inc. and the following affiliates: Banking and trust products and services, including investment advisory products and services, are provided by SunTrust Bank. Securities, insurance (including annuities) and other investment products and services are offered by SunTrust Investment Services, Inc., an SEC registered investment adviser and broker-dealer, member FINRA, SIPC, and a licensed insurance agency. SunTrust SummitView is a federally registered service mark of SunTrust Banks, Inc.