Guide for Financial Planning for Millennials

Many millennials entered adulthood during the Great Recession and have been cautious about investing in the stock market since. A 2018 Gallup poll found that only 37% of millennials owned stocks, potentially costing themselves millions in future savings. Failure to make the right investments early has long-term wealth management implications, including impacting retirement plans later in life. Here are some money management tips for millennials to enhance their long-term savings.

Millennial Retirement Savings and Investment Tips

Limit Debt

Nearly 3.5 million millennials owe at least $20,000 in student loan debt. Saddling yourself with significant debts impacts your ability to save for retirement and invest. Consider consolidating your loans or finding ways to limit your interest payments. These are good strategies to decrease the total amount you spend while paying down your student loans.

Also, make sure you don’t accumulate any credit debt while paying down student loans. Credit cards are an effective tool for developing a solid credit history, but only paying the minimum balance puts your finances in a difficult spot. Paying the total bill on time each month helps avoid further debts that impact your ability to save.

Contribute to a Retirement Savings Account

Take advantage of your employer’s 401(k) program if they offer one, or start contributing to a tax-free IRA. Investing in your retirement at a young age allows you to maximize growth. Most IRAs default to a 6% rate of return; this means that a $500 investment will be worth more than $6,000 after 45 years. However, that $500 investment is only worth $1,600 after 20 years. By delaying when you start saving for retirement, you limit your wealth’s growth potential.

Set Realistic Goals and Invest Accordingly

Knowing why you’re investing determines how you invest. Determine your short and long-term goals and risk appetite by assessing your financial situation; this helps guide your investment strategy. Remember, no one invests the same way. If you’re uncomfortable with high-risk investments, then aim for low-risk stocks that yield more stable returns over more extended periods.

Seek Professional Guidance

As a young professional, saving for your future may seem like a daunting task. However, you don’t have to do it alone. Partnering with a certified financial planner gives you access to their knowledge and experience about the marketplace. They can also help you develop your financial plan based on your personal goals.

Crypto vs Stocks: Which is Right For You?

One of the important decisions millennials have to make when finalizing their financial game plan is whether to invest in stocks or cryptocurrency. Knowing the difference between the two markets provides valuable context regarding which approach is best for you.

The most important difference is that buying stocks involves purchasing an ownership interest in a business. That interest is backed by that company’s cash flow and assets, and its value is determined by investors assessing the company’s potential future success. Cryptocurrencies aren’t endorsed by hard assets and are a speculative market; their prices experience drastic swings and are influenced by sentiment. Your risk tolerance plays a significant role in determining if you should invest in the crypto market.

Summit Wealth Partners: Offering Experienced Financial Planning for Millenials

Finding a trusted financial advisor is important when developing a personal finance plan. Summit Wealth Partners has decades of experience helping clients meet their financial goals. We believe in building relationships with our clients and accomplish this by following our financial planning process:


Our first step is a free one-hour consultation where we determine if we’re a good fit for your needs. This step involves gathering documents, studying your financial information, and assessing your current situation.

Plan Development

We start developing your custom financial strategy using the information from our consultation. One of our advisors carefully walks you through each step and explains the purpose behind each process.

Plan Implementation

This is where we turn our mutually developed plan into action. Our team is completely committed to your success and performs regular check-ins on your portfolio to verify that your expectations are met.


We believe that transparency is key to building a long-term relationship with our clients. The advisors at Summit provide regular check-ins and keep you up to date on your portfolio’s performance.

Let Summit Help You Plan For the Future

It’s never too early to start planning for your long-term goals. The advisors have decades of experience helping our clients save for their financial goals. Whether it’s retirement, a new home, or making sure their family is secure, we help systematically care for your wealth. Contact us today to learn more about Summit Wealth Partners helps with financial planning for millennials.

Want To Learn More About Our Millennial Retirement Savings Tips

Contact Summit today for a free consultation, and one of our advisors will walk you through our financial planning for millennials process.

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