Six Trends Shaping the Financial Landscape

How are millennials investing their money? What factors are influencing retirement satisfaction? The answers to these questions and more have shifted over the past year, due to changes in the economy, markets and investor behavior.

So where do we stand now? Here’s one bite of six important trends affecting investors today.

Millennials’ Money Habits

Investing

An increasing number of millennials are choosing to invest in cash for the long term, putting themselves at risk at retirement age without a broadly diversified portfolio.
A Financial Security Index study revealed that a plurality of 18-29-year-olds choose cash as their preferred investment that they won’t touch for at least a decade —triple the number that would choose to passively invest in equities for the long term.1

Despite the conservative approach, young adults are doing better than their parents did by starting to save at a younger age (22 vs. 35 for boomers).2

Millennials saving in cash for long-term investing
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Saving

On the other hand, millennials are ahead of the curve when it comes to saving.
Though they are often stereotyped as bright-eyed idealists, new research reveals that millennials are old souls when it comes to financial planning.

According to Northwestern Mutual, millennials have a clear sense of their financial goals and are more inclined to save than spend — traits they share with their grandparents’ generation.3

Millennial financial goals
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The Impact of Health on Wealth in Retirement

For many retirees, the key ingredient to a happy retirement isn’t a new sports car or a vacation home — it’s good health.

New research reveals that 73 percent of retirees in better health feel more financially secure in their golden years, compared to 51 percent of retirees in poorer health.4

7 out of 10 retirees feel more secure after retirement

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Preparing for the Unexpected

Are you financially prepared for a family emergency? Sudden illness? Unemployment?
For many Americans, the answer to these questions is ‘no’.

New research from The Pew Charitable Trusts reveals that more than half of Americans are unprepared for financial emergencies, with one-third of respondents reporting that they have no extra cash stowed away.5

It’s tempting to focus on the here and now of your finances. But it’s just as important to prepare for the financial implications of events you can’t predict, which is where the benefits of a long-term financial plan come into play.

financial-emergencies

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The Impact of Bankruptcy on Future Financial Health

In 2010, roughly 1.5 million Americans filed for consumer bankruptcy protection, with debt relief totaling about $450 billion. So what happened to the debtors after they filed?

Drawing from the results of 500,000 filings and tax records, the National Bureau of Economic Research found that Chapter 13 bankruptcy filings resulted in generally better outcomes for filers that were granted protection, compared to similar persons who were not.6

Of course, there are negative outcomes to consumer bankruptcy protection — including credit ratings, finances and emotional well-being — that this study did not cover.

Effects of chapter 13 bankruptcy
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The True Cost of Hiring New Talent

A winning retention strategy is not only vital to maintaining employee morale, it can also have a big impact on a business’s bottom line.

Aside from salary and benefits, the cost of replacing employees who’ve flown the coop can be upwards of $3,000.7 That can be a hefty expense for many businesses.

We put the price into perspective in the infographic below.

Algorithm

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Hewins Financial Advisors, LLC d/b/a Wipfli Hewins Investment Advisors, LLC (“Hewins”) is an investment advisor registered with the U.S. Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940. Hewins is a proud affiliate of Wipfli LLP. Information pertaining to Hewins’ advisory operations, services and fees is set forth in Hewins’ current Form ADV Part 2A brochure, copies of which are available upon request at no cost or at www.adviserinfo.sec.gov. The views expressed by the author are the author’s alone and do not necessarily represent the views of Hewins or its affiliates. The information contained in any third-party resource cited herein is not owned or controlled by Hewins, and Hewins does not guarantee the accuracy or reliability of any information that may be found in such resources. Links to any third-party resource are provided as a courtesy for reference only and are not intended to be, and do not act as, an endorsement by Hewins of the third party or any of its content or use of its content. The standard information provided in this blog is for general purposes only and should not be construed as, or used as a substitute for, financial, investment or other professional advice. If you have questions regarding your financial situation, you should consult your financial planner, investment advisor, attorney or other professional. Hewins does not provide tax, accounting or legal services.
OneBite Editorial Staff
OneBite Editorial Staff

OneBite® is a Top 50 Financial Advisor Blog powered by Hewins Financial Advisors. Founded in 2011, the digital magazine is dedicated to providing intelligent, in-depth coverage and analysis of the top financial and economic issues facing investors today.

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Six Trends Shaping the Financial Landscape

time to read: 3 min