Financial planning for Gen Y: why advice matters

Goodbody is dedicated to designing financial plans to build and protect the wealth of its clients through every milestone in their financial journey – and has been for almost 150 years. Here we examine the value of financial planning, particularly for Gen Y. 

People who work with a professional financial planner feel better off both financially and more broadly. They report having a better quality of life, enjoying more financial confidence and resilience, and feeling more satisfied with their financial situation.

That’s according to research conducted by the Financial Planning Standards Board (FPSB) Ireland1.

When it comes to financial planning, there’s a big misconception that it is only for the wealthy. The truth, however, is that financial planning is a path for anyone to actually gain wealth. Indeed, the FPSB Value of Financial Planning Consumer Research study found that 8 in 10 clients earning €80,000 or less per year who work with Certified Financial Planner (CFP) professionals feel financially secure and confident which is higher than unadvised consumers on the same level of income. What’s more, its findings suggest that 92% of clients of CFP professionals say they are likely to continue the relationship with their financial planner.

At Goodbody, we create bespoke financial plans that help our clients see what they have today, what financial goals are most important and how to reach their desired goals. Catriona Coady, Head of Tax at Goodbody, said: “Our goal is to provide expert insights to our clients right when they are making the most important decisions in their life, whether that’s how or where to invest, or how to protect your family and provide for their needs, or what you do when circumstances change. We invest our time in listening to our clients and providing the right advice, at the right time.”

The financial needs of Gen Y

According to the FPSB, Generation Y, or ‘Gen Y’ – who are born between 1981 and 1996 – are on the verge of receiving unprecedented levels of intergenerational wealth via inheritance or gifts. The study found:

  • Nearly one in two Gen Y already have or are likely to come into an inheritance or major financial support.
  • One in four expect to do so in the next five years.
  • One in three of those expecting an inheritance or major financial support will be receiving over €250k of additional funds.

The inheritance of a large sum of money can change your circumstances significantly, and you may need financial planning to allow you to make the most of this.

“Preparing the beneficiaries of inheritance for the receipt of wealth can have significant benefits: with some financial planning and structuring, families can reduce their tax bills, more easily transfer an asset, or speed up and simplify the inheritance process,” said Coady.

At Goodbody, we help families understand the inheritance process, define the most important objectives for your family, create tax efficient plans to meet those priorities and design a plan for the recipients of the wealth.  In doing so, we can help preserve wealth and income for both generations.

In addition to receiving inheritance, other areas of concern for Gen Y noted by the FPSB Value of Financial Planning Consumer Research study included growing their wealth, starting or growing a family, buying a property, and planning their children’s education.

1 The FPSB Value of Financial Planning Consumer Research study, undertaken in February 2023, involved an online survey of 1,038 respondents from Ireland, each of whom was over 25 years earning over €60k p.a. or holding over €35k in investable assets.

This is a marketing communication.

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