I am the father of two Gen Z’s. Many of their college roommates, teammates, and friends are now in my 401(k) advice client base.
Both of my kids have confirmed the results I read of a Qualtrics study on behalf of Credit Karma. The study found that that 52% of Gen Z’s are getting financial advice from TikTok. And 57% are getting it from Instagram.
I receive e-mail, phone call, and text messages from my kids. And their friends. All new to the working world. Trying to navigate their 401(k)’s HSAs, and after-tax investment accounts.
Often, I “talk them down.” From dangerous financial advice they read and hear from unknown social media sources.
Millennials are as bad. They seek out this kind of information and advice on Facebook (53%) and Instagram (39%).
Again, based on conversations with my two kids. And their friends. They do not trust anyone with regard investment management advice or services. But seek out and act on financial advice from complete strangers?
Even worse. Many of my kid’s friend have taken financial advice from an online source. Without fact-checking the information.
I realize that social media is an essential part of their young people’s lives. But everyone involved must face up to a few facts. Before big financial mistakes result.
The U.S education system has messed up. By not providing even a basic level of financial education for kids. Even though learning about how to manage money is an essential life skill.
Gen Z’s have a mobile lifestyle. They want an on-the-go answer to every question. And they do not want to wait for it.
That is fine. Gen Z’s can process huge amounts of information at a much faster pace. But when it comes to financial advice they need to beware. That advice must be personal. And come from a person who know what they are talking about.
I have reminded my two kids of this fact many times. In all areas of their life. Especially in personal finance. And making investment management decisions.
“I have already been where you are trying to go. I may not always be right, but I have more experience at being wrong. So, you can avoid the same mistakes I made.”
Do not listen to an influencer on social media. Of a self-proclaimed ‘money expert’ on social media. Social media is full of characters with a hidden agenda.
When it comes to 401(k) advice, you must get personal. And specific. The advice must be applicable to your default menu of 401(k) mutual fund options. Or your ability to use your SDBA (self-directed brokerage account) option in your 401(k).
If you want on-the-go 401(k) advice, I can help. I can even supplement the advice with images. That rank your default 401(k) mutual funds. On annual investment performance and costs.
Gen Z’s have 401(k) advice tools available. They need to pause their scrolling long enough to find a real person to help them. Who provides a logical, disciplined, and organized 401(k) investment management strategy.
Ric Lager
Lager & Company, Inc.
I have spent years trying to improve my social media skills. Trying to find the best way to share my 401(k) expertise. Twitter, Facebook, LinkedIn Groups, blogging, etc.
I may have finally figured it out. Nothing beats a well-crafted newsletter delivered to your inbox once a week. With independent, fiduciary-level content specific to your 401(k) investment management decisions.
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