The study surveyed more than 3,000 U.S. investors ages 30 to 69 with at least $100,000 in investable assets.
Investors feel financially confident but are making tradeoffs to help the next generation in their family.
An Ameriprise advisor can help you prioritize your goals and provide you with personalized financial advice to achieve them.
A shift in financial attitudes and actions is underway among investors, according to our Modern Money study:
- Investors are confident about their financial futures, but they think it will be harder for the next generation to achieve financial success.
- Today’s parents are helping children more with financial milestones than past generations.
- Talking about money is more acceptable than a decade ago.
The study, a survey of more than 3,000 U.S. investors ages 30 to 69 with at least $100,000 in investable assets, sheds light on how the changes impact investors’ relationships with their families and money — and how working with a financial advisor can help you feel more confident to achieve your goals.
Investors are confident about their financial futures, but they believe it will be harder for the next generation in their family to feel financially comfortable.
If you share that belief, you can improve the outlook — and your financial confidence — by communicating with your family. Consider ways to:
- Share your money values and approach to money management with your kids.
- Talk openly about your financial experiences, including successes and mistakes.
- Invite your children to join the next meeting with your financial advisor.
Among Modern Money respondents:
62% feel extremely or very confident about their financial future
47% said they are better off than their parents were at the same age
48% think it will be harder for the next generation to achieve financial success
Parents are helping children more with financial milestones
Financial independence is coming later in life, and one-third of parents are delaying their own retirement to fund some of their children’s financial milestones.
This trend makes it more important than ever to strategically plan how to help children financially while also prioritizing retirement savings.
Among Modern Money respondents:
53% believe children should be financially independent at a later age then they themselves were
33% have delayed their own retirement or would do so to help their kids pay for college
10% say their parents made this same sacrifice for them
Consider these actions to stay on track:
- Document your specific financial goals and track progress.
- Prioritize your retirement savings while you are working and earning income. After you retire, you may have limited options to boost savings.
- Fund a 529 college savings plan or other tax-advantaged accounts as early as possible if you want to help your kids pay for college.
Talking about money is more acceptable than ever
Investors who talk more openly about their finances tend to be more financially confident than those who avoid the topic. Pave the way for money talks with your family.
- Discuss family finances before a milestone or mishap. For example, a graduation or wedding can be a positive time for a talk when families are gathered.
- Determine goals and priorities. Set an agenda to help keep everyone focused and be realistic about what you can achieve in each conversation.
- Keep communication open. Encourage everyone to speak up, be frank, stay open-minded and keep past conflicts out of the talks.
“Talking about money pays off and can be a positive, constructive experience for everyone involved. Consulting a financial professional may be a good place to start and break the ice.”
Achieve your financial goals
Among Modern Money study respondents, 79 percent who work with a financial advisor believe they are doing better than others their age compared to 73 percent who do not work with an advisor. In addition, 64 percent of those who work with an with an advisor feel confident about their financial future, compared to 59 percent without an advisor.
Talk with an Ameriprise advisor, who can provide you with personalized financial advice and support to:
- Prioritize your retirement and other goals.
- Understand the benefits and tradeoffs of funding financial milestones for your kids.
- Talk about money with your family.