Millennials often think they don’t need to work with a financial planner because they’re still paying back student loans or are just getting started in their careers. But in reality, there’s no better time to start working with a financial advisor.
The Millennial Generation has unique needs, and a financial planner can help them establish financial goals and habits that propel them through to retirement.
Whether you need help with basics like budgeting and tax planning or you’re ready to prioritize your future with retirement planning, a financial advisor can help.
5 Best Financial Advisors for Millennials
We’ve rounded up five of the best financial advisors for millennials, selecting firms that specialize in providing financial services to young professionals.
1. Gen Y Planning
The firm offers flexible advice from fee-only financial advisors. Gen Y Planning is fully remote, so you can schedule virtual calls at your convenience.
Led by Sophia Bera, CFP, the firm starts clients out with a 30-minute call to assess their finances, followed by a discovery meeting, a recommendation meeting, and two annual check-in meetings.
Clients also get ongoing advice, access to a team of legal and financial experts, and investment management services with Betterment.
Some of the company’s greatest areas of expertise are student loans, rewards credit cards, and company benefits reviews.
You can get started with a $150 consultation. If you decide to work with Gen Y, that amount is credited toward your ongoing management fees. There’s an additional 0.86% investment management fee if you elect to have this service.
2. Millennial Wealth
While it’s headquartered in Seattle, Washington, the firm has virtual clients nationwide.
Millennial Wealth is geared toward a diverse range of young clients, regardless of their net worth or investable assets.
The firm offers a free consultation. If you choose to continue, they charge $225 per month with a $900 upfront fee. If you meet the $250,000 asset minimum, you pay 1.00% per year, and the upfront fee is waived.
You can get help with a variety of personal finance topics like money management, estate planning, wealth management, and repaying student loan debt.
Facet is another popular pick for millennials. The digital advisory firm assigns a dedicated CFP to each of its clients.
Rather than charging commissions or a percentage of your invested assets, Facet charges a flat fee for its virtual financial planning services. The fee is based on your financial situation and the services you need.
Facet’s fees typically range from $2,000 to $8,000 per year. During the first year, you’ll meet frequently with your advisor.
After that, you can expect two to three meetings per year, with access to your advisor at any time for investment advice or thoughts on financial decisions.
Facet is a full-service investment advisor and financial consultant. Whether you’re an entrepreneur with questions about your new business, you’re wondering how to invest in a Roth IRA, or you’re looking to start investing in real estate, Facet can provide tailored advice to guide you along the way.
4. District Capital Management
District Capital Management is another firm that’s laser-focused on helping millennials build a bright financial future.
Though it’s headquartered in Washington, D.C., the firm is open to clients nationwide, except for Louisiana, Nebraska, Texas, and Washington.
If you prefer to meet with your advisor more frequently than once or twice a year, you may be drawn to District Capital Management. Client meetings are scheduled for every four months.
You can also email your advisor whenever you’re facing financial challenges or have a question about an upcoming decision.
The District Capital Management Firm has its CFA designation. All of its advisors are CFPs or Accredited Financial Advisors, and they’ve all signed a fiduciary oath.
The firm charges a flat advisory fee that ranges from $295-$500 per month for individuals, with investment fees between 0.35% to 1.00%, or $1,000 for assets under $100,000.
5. Brooklyn Fi
Brooklyn Fi (short for financial independence) is a New York-based firm that specializes in financial planning for tech professionals and creative entrepreneurs.
The firm offers financial planning, investment management, and outsourced accounting services.
Brooklyn Fi is extremely transparent, providing its fee structure, downloadable fiduciary pledge, and in-depth FAQs upfront on its website.
BkFi is a fee-only advisor. Annual fees start at $4,800 and can vary depending on how complicated your financial situation is.
You can find an introductory video on BkFi’s website that answers basic questions about its services and take a quiz to see if it’s a good fit.
From there, you can book a 20-minute discovery call to get started. If you’re interested in proceeding, you can sign an annual contract and get started.
How to Find the Best Financial Advisor for Millennials
According to Sophia Bera, the founder of Gen Y Planning, here are the most important things millennials needed to do to find the right financial advisor:
1. Factor In Age and Personality
Bera recommends that millennials find a financial planner who isn’t more than 10 years older than them. Boomers, Gen X, Gen Y, and Gen Z all face unique financial challenges, and it’s helpful to partner with an advisor who’s in the same boat as you.
According to Ba\era, “This makes a huge difference–I know what my clients are going through because I am going through it too,” she says, which allows her to connect with her clients on not only a professional but also a personal level.
2. Look for a CFP and “Fee-Only” Advisor
It’s also important for millennial clients to find a CFP (certified financial planner), which is a credential given to financial planners who have extensive experience working with clients in a financial planning capacity and have completed a rigorous certification exam.
It’s also important to work with fee-only advisors who can provide non-biased advice because they don’t sell financial products for a commission like other financial advisors.
Similarly, make sure that your advisor is a fiduciary, since these advisors are legally bound to act in your best interest with the financial advice and investment decisions they make.
3. Find Someone Who Fits Your Schedule and Lifestyle
For most millennials who are working long hours, building families, and traveling, it can be hard to make time to schedule appointments.
Virtual meetings are an excellent solution. Look for an advisor who offers virtual client meetings on Zoom, Skype, or Google Hangouts.
When you’re looking for your own financial planner, make sure they can work with your lifestyle and will be available when you need them to be.
4. Look for an Advisor with a Holistic View of You and Your Goals
“80% of what I do has nothing to do with investing,” Bera says, referencing how she has recently helped some of her clients navigate the world of travel hacking (using credit card points to get free flights and trips around the world).
Another one of Bera’s more unique offerings is providing career and business coaching using her own experience as an example.
So when you are looking for a financial planner who specializes in working with millennials, find one who actually listens and can respond to you and your own goals. Everyone is different and requires a different path.
5. Look for a Financial Planner with Connections
The best financial advisors for millennials are well-connected and willing to put you in contact with other professionals whose specialties fit their clients’ needs.
In our conversation, Bera mentioned three or four other people that she thought I should connect with and offered to make introductions. She also said that when she thinks that a potential client might be a better fit for another financial planner then she makes an introduction.
Being a financial planner is ultimately about doing what it takes to help make you more successful, and this includes not only helping you with decisions but also pointing you in the right direction.
We all have unique goals and money is just a tool to help us accomplish them.
Most millennials could benefit greatly from talking with a financial planner as they figure out the best way to make and save enough money to live life on their own terms.
If you are ready to hire an advisor, use this list as a starting point, ask friends for referrals, and do your own research to find the advisor who’s the right fit for you.
To choose the best financial advisors for millennials, we used some of the criteria below to compare and review each firm:
- Asset requirements
- Fee structure and price
- CFP certification
- Fiduciary standard