Open any newspaper and you will see an article about generational inequality, and the prediction that owning a house will become just a dream.
Financial advisers cannot help with the increase in contract and casual work, nor the trend for underemployment with young workers.
What financial advisers can help Gen Y and Gen Z with is planning your life and building wealth. There are 2 important things for Gen Y and Gen Z to understand:
1. Older generations essentially had a forced savings plan. By buying a property the older generations put their surplus cashflow into loan repayments. Without this discipline it can be very hard to stay focused on allocating some of your salary towards investing.
Gen Y & Gen Z are the first generation that have to begin exploring wealth creation that does not include buying one or two properties and waiting for them to increase in value.
An adviser can help create, and maintain a plan for growing wealth. That does not need to include a property, but it can if that’s the end goal.
2. The world is a different place. There are more options and choices than ever before. So an adviser can help understand what buying that new car means, or how that long overseas trip affects the longer plan. It does not mean you should not buy that new car, it just means an adviser can help illuminate the trade off and show what each investment/spend means to your situation.