Ep 34: Millennial Money

2023-09-08

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It’s all about time-honored, savvy advice tailored especially for Millennials on this special episode of The Wilson Wealth Show. Hosted by Maurice Wilson, Founder of Wilson Wealth, the focus is on smart financial planning strategies for people born between 1981 and 1996 – a huge group facing very particular challenges, thanks to things like high interest rates, a tight housing market, career instability and the pressures to keep up with influencers. You’ll learn about the negative impacts of social media, especially when it comes to trading long-term financial security for short-term lifestyle choices that are more “show” than “go.” Get sage advice from Millennial entrepreneurs like Garrison Warren, Laterio Jackson and Marcus Johnson of Nashville-based Johnson Capital Planning as well as actionable insights from our host and Ablavi Gbenyon-Little, his Director of Operations at Wilson Wealth. The panel covers everything from when and how to buy a home to why attending college isn’t – and doesn’t need to be – for everyone. If you’re a Millennial (or of any other generation!), this is your starting point for achieving the financial literacy, health and freedom you desire now – and into retirement!

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Key Quotes:

“The days of not paying attention and just thinking that your income is going to be enough (to cover you through retirement) are over. It’s a disaster because it works until it doesn’t.” (Marcus)

“Homing in on what we want to do with our money is important because, if we don’t do that, without a plan for our money, that money’s going to get spent!” (Marcus)

“It’s a whirlwind of things that we’re dealing with. (High-living) is a great lifestyle from the looks of it, but in reality it’s kind of a ticking time bomb. The things that we’re doing today can really affect us in the future, financially and health-wise.” (Garrison)

“This (Millennial) generation can now build wealth incrementally in some of the best-run companies out there … You can automate a ‘keep the change’ program that’s going directly to your brokerage account.” (Maurice)

“Look into (life insurance) coverage while you’re young and healthy and get a policy to make sure you’re covered. There are also (term) life insurance policies that accumulate cash, which can be taken out on down the line.” (Laterio)

“The one thing that separates the people who are successful versus people that aren’t is that they were truly committed to whatever they did.” (Marcus)

“I was nervous. I was scared (to go out on my own). But I believed in my abilities.” (Garrison)

“So often we get caught up in trying to have the illusion of success today when we aren’t putting in the work to be that truly successful individual tomorrow.” (Maurice)

“It used to be that not going to college was a society marker for you being dumb, but now we’ve evolved past that. We use phraseology that allows us not to force anybody into a box ... It’s not about where you go but finding out what you want to do and giving it all you’ve got.” (Maurice)

“Become obsessed with figuring out what you want to be when you grow up and devise the plans to get there, understanding that you might have to pivot and adjust but if you stay focused you will accomplish your goal.” (Ablavi)

“The longer you stay in a career the more vulnerable you are to getting laid off in your 40s and not having a lot of options. So having a second income stream is probably one of the best pieces of advice you can give somebody.” (Maurice)

What We Covered:

0:25 – What defines a “Millennial” (born between 1981-1996) and why it’s a generation that demands our attention!

1:00 – About challenges Millennials are facing (that their Baby Boomer predecessors did not):

Onerous student loans.
Unaffordable/unavailable housing.
Rising interest rates.
Artificial Intelligence (and its implications).

1:25 – Meet our panel of Millennial experts: Marcus Johnson, founder of Johnson Capital Planning; Garrison Warren, VP at Johnson Capital Planning; Laterio Jackson, Director of Operations at Johnson Capital Planning; Ablavi Gbenyon-Little, Director of Operations at Wilson Wealth.

2:00 – Marcus spells out the key financial obstacles to building Millennial wealth:

Avoidance: Lack of awareness and diligence about how they are spending money.
Social Media: Unchecked spending to keep up appearances.
Falling Short on Savings: Not setting aside funds to provide liquidity in retirement.

3:00 – How to budget, save and manage debt!

3:45 – Key elements of a smart “spending plan” (aka budget!):

What’s your overall monthly income?
What are your predictable, fixed monthly expenses? (i.e. mortgage, car insurance, etc.)
Are you running a deficit? If so, you need to make more money or cut expenses!
Do you have a monthly surplus? It’s time to put that money to work for you!
Set clear goals and benchmarks.

5:00 – Garrison, himself a Millennial, weighs in on the impacts of social media and the pressure to “keep up.” FOMO (fear of missing out) is real and can have real financial consequences.

6:30 – Warning: Maurice has observed that higher-income folks who tend to have the most vulnerability to immediate gratification rather than investing for long-term financial success.

7:40 – Garrison urges investing early in order to reap the benefits of compounding interest and committing to healthy habits to avert potentially costly medical issues and disqualification from life insurance.

09:48 – Marcus stresses the huge pay-off that can occur when we proactively manage our relationship with money and look at investing as a tool – and accelerator – for wealth.

11:00 – Laterio offers advice for Millennials who want to invest, even with limited resources. It starts with shifting your mindset and becoming financially literate!

13:00 – What is fractional investing? Maurice explains this new technology and how easy it is to purchase micro-amounts of attractive individual stocks.

14:15 – High interest rates, low inventory. Ablavi explores the considerations for Millennials when it comes to buying their first home, including:

Saving for a down payment.
Establishing excellent credit.
Planning responsibly to carry the long-term financial commitment.
Laying the foundation for a solid, reliable career/income.

15:25 – Is home ownership (or the possibility of being “house poor”) even a viable alternative for Millennials? A look at the upward interest rate cycle and what lies ahead, depending on geography and individual financial profiles.

17:20 – Laterio shares thoughts on life insurance, who needs it and at what point in life. It’s likely to be less costly and more available when you purchase as a young, healthy person.

19:30 – Where you want to be (at least 10x current income) when it comes to the amount of life insurance necessary to cover you and your family. Marcus also suggests you ask: What do you want your life insurance to do (and compensate for) if something were to happen to you?

23:10 – Getting entrepreneurial. Marcus reflects on his journey to starting an independent business and some of the common stumbling blocks for Millennials:

Spreading their attention to thin; not committing to one focused project.
Understanding that sacrifice is required and some days will be tough.
Failing to keep the “why” front and center.
Keeping to a vision that’s authentic (and not just something trending on social media).

25:45 – The secret to his success! What it took for Garrison to make a break from corporate banking to go out on his own in pursuit of a five-year plan to build independent wealth.

31:30 – What it looks like to be a Millennial parent who has switched careers. Laterio shares thoughts about the value of higher education, what she’s advising her teen-age daughter and why getting work experience is critical.

33:50 – Key Advice: Why Maurice believes it’s important to remind young people that careers can evolve and change. What you choose to do at 18 or 21 doesn’t have to be for life!

35:00 – Words to the Wise – The Panel’s Best Advice for Millennials Today:

Ablavi: Become obsessed with figuring out what you want to be when you grow up and making the plans to get there. Even if you have to pivot, you’ll get there if you stay focused. Also: Consider starting a side hustle to protect against an unexpected layoff.
Garrison: Stay off social media for social media’s sake! Take life seriously and plan for the unexpected. Get that life insurance early! Life is a journey, not a competition.
Laterio: Remember that time is among your most valuable assets. Don’t allow yourself to be consumed by the thoughts of others about what your life should look like. Create a life for the person you want to be, bearing in mind that it might change down the line. Be gentle with – and invest in – yourself on the daily!
Marcus: Remember that the people who make the most money in this world are the people who solve problems for other people. If you can figure out a way to do that, you’ll always have an income stream.

43:04 – Marcus’s Six Nuggets of Financial Wisdom:

#1: Have a clear, specific idea of what you want your money to do.
#2: Create an automated program for investing your money.
#3: Diversify your investments and income streams.
#4: Develop a long-term retirement plan. It’s not a short-term or do-it-yourself project!
#5: Buy life insurance to create wealth. It’s a tax-free way to leave money to your kids.
#6 : Protect your main investment: You! Self-care isn’t a luxury. It’s a necessity.

44:43 – Parting Thought: Maurice emphasizes the importance of taking downtime to recharge and using time wisely. (Check out Episode 1 of The Wilson Wealth Show, "The Value of Time.")

Further Links/Relevant Resources: