Top news articles for financial advisors and personal finance
Week of 5/16
Each week, we are giving you Sora’s weekly report highlighting the top insights and relevant articles for financial advisors and personal finance. This week's recap focuses on automation tools, healthcare costs for retirees, the buy now pay later boom / bust?, and characteristics of each generation when approaching financial planning.
As Stock Markets Dive and Inflation Rises, It Pays to Automate Your Finances (J.J. McCorvey, The Wall Street Journal)
With inflation at record highs and drastic changes in the stock market, it’s hard as humans not to act rashly under the pressure of stress. However, new tools such as robo advisors and AI-powered savings accounts can help us take the best actions for our financial well being. Read more to learn how automation can help individuals with their spending, savings and investing.
Fidelity Study Shows Retirees Way Off on Health Care Costs Estimates (Gregg Greenberg, InvestmentNews)
Most retirees significantly underestimate their healthcare costs in retirement. Fidelity expects that for a couple retiring in 2022, healthcare costs throughout retirement will be $315,000, nearly double the estimate for couples who had retired in 2002. Read more to learn how advisors can help their clients be prepared for these high costs.
Buy Now, Pay Later is Not a Boom, it’s a Bubble, Harvard Researcher Says (Jessica Dickler, CNBC)
Nearly 4 in 5 U.S. consumers use credit to make purchases through buy now pay later. Buy now pay later has gained popularity, and can now be found at nearly every online point of purchase. However, many of these loans are considered subprime. Read more to learn about this alarming trend.
Why Most Millennials Resemble Their Grandparents’ Generation (Christopher Robbins, Financial Advisor)
Natixis Investment Management recently came out with a surprising report that nearly 72% of millennials reported having a financial advisor, a higher proportion than Gen X or baby boomers. Despite being a digital generation, nearly half of millennials prefer a human being as an advisor. Read more for insights about the unique characteristics of millennials that might affect their relationship with financial advisors.
New Envestnet Research Reveals Financial Nihilism Among Some Millennials (Jeff Berman, Think Advisor)
Many Americans are not planning for retirement driven by fear of making a mistake and not knowing where to start. However, even those who reported they were participating in financial planning defined planning loosely as “planning to retire one day.” Read more about how each generation’s characteristics affect their approach to financial planning.