The September 2017 issue of the peer-reviewed Journal of Financial Planning explored opportunities and challenges for the next generation of financial planners and clients. The cover story of the issue, Serving Millennial Clients with a 3-Step Model was co-authored by Russell Kroeger, CFP®, EA, who is pursuing a Master’s Degree in Advanced Financial Planning at GGU. From 2015 to 2017, Kroeger worked for the financial planning firm of Dr. Dave Yeske, CFP who designed the curriculum for the program and is a leading authority in the field.
Kroeger decided that he wanted to be a financial planner at age 17, and follows his passion to this day. His life and career goals brought him to San Francisco, and soon after he immersed himself in the GGU program. “Not long into my coursework, I developed the necessary foundation for a deep dive into psychology and behavioral science research, ultimately identifying evidence-based strategies that help me to engage and serve young professionals more effectively.” Kroeger wants to serve not only clients, but also increase the profession’s body of knowledge as he does with the recently published article.
Not long into my coursework, I developed the necessary foundation for a deep dive into psychology and behavioral science research…
Along with his co-author, Yusuf Abugideiri, CFP®, Kroeger cites research that says Millennials are more stressed, more collaborative in their decision-making (as shaped by social media experiences), and less sure of their ability to make significant life and financial decisions. Although statistics do show that Millennials are cash poor today, the authors cite Boston College Center on Wealth and Philanthropy that they stand to inherit part of an estimated $59 trillion in wealth transfer over the coming decades.
These factors suggest that this generation needs financial planning help – and would benefit from it more — than those that preceded it. The authors’ 3-Step Model to Serve Millennial clients is to:
Step 1: Use a robust discovery process to uncover worldviews and identify goals.
Step 2: Craft policies to overcome scarcity mentality and clear the path to progress.
Step 3: Build confidence in decision-making abilities through collaboration.
“The role of the financial planner is to serve as a change agent,” the authors conclude, “helping the [Millennial] client craft policies that remove the need for deliberation, building confidence in their decision-making ability, and creating a decision-architecture rooted in their value system.”
Kroeger says that research of this type is important because young professionals are the future leaders of the world: “Opportunities for every individual to establish healthy relationships with money can serve as a catalyst for us to build a more inclusive, empowering, and fulfilling society.”
About Russell Kroeger
Russell Kroeger, CFP®, EA, founded Paradigm Wealth Architects to help young professionals live a life that is in alignment with their ideal-selves, encouraging each client to pursue Wealth and impact the world in a way that is authentic to their unique life experience. In addition to operating Paradigm Wealth, Russell speaks at conferences, consults for financial planning firms, and is a member of Money Quotient’s Research and Education Task Force. He also volunteers as the Director of Advocacy for the San Francisco chapter of the Financial Planning Association (FPA) as well as the NexGen representative for the OneFPA Advisory Group.