Millennials are now in their 30s and even early 40s and there are conflicting narratives about how they’re faring financially as they step into middle age.

Fiduciary experts estimate that millennials will be the beneficiaries of the largest transfer of wealth between generations, estimated at $90 trillion over the next 20 years.

Yet, a study by LendingClub, a financial services company, found nearly three-quarters of millennials live paycheck-to-paycheck, a jump from baby boomers and Generation X. Fewer millennials own their home compared to their parents’ generation and many have little or no savings.

Ready or not?

These data points prompt some financial experts to warn that millennials are not ready to take on the responsibility of the great wealth transfer which will come as inheritances and other assets.

But that’s not what some wealth managers in the Tri-Cities are seeing from the generation born between 1981 to 1996. Local wealth management firms say they are seeing many millennials engaging with them, coming in with lots of questions and wanting to carefully manage their wealth.

“I’ve just been very impressed by the new clients we’ve had in that age group,” Michelle Clary, founder and CEO of Piton Wealth of Kennewick, told the Tri-Cities Area Journal of Business.

Piton has three financial advisors managing $500 million in assets in Benton and Franklin counties, according to the Journal’s Top Wealth Management firms list.

Clary noted that while clients from older generations sought out her and other financial advisors to keep an eye on their wealth, millennials want someone to help inform their decisions on everything from retirement or saving for a home to saving for their children’s college education.

“It is a very mature, wise posture that they are taking,” Clary said.

Haley Johnson and Cameron Ridgeway, themselves millennials, say that’s what they are also seeing from their own generation in their roles as wealth advisors at Petersen Hastings Wealth Advisors in Kennewick. The firm has 20 financial advisors managing $1.3 billion in assets in Benton and Franklin counties, according to the Journal’s Top Wealth Management firms list.

Preparing for the future

Both have clients who’ve already benefited from the wealth they received from older relatives and are looking at how they can use it to buy a home, start a family or just make sure they are where they should be financially.

“They’re kind of in this sweet spot where they can be proactive,” Ridgeway said, noting that millennials still have many years before they’d likely retire. “It’s getting that financial literacy knowledge down.”

However, experts acknowledge there are barriers. While millennials make up 36% of the workforce, Ridgeway says only about 13% of Petersen Hastings’ clientele comes from that age group.

Both Piton and Petersen Hastings offer lower minimum asset requirements for new clients whose relatives are currently doing business with the firms. But that can still sit at $150,000 to $160,000, a number that could be out of reach for millennials that faced economic tumult from the Great Recession to the Covid-19 pandemic and has the highest amount of student loan debt.

“We’re still trying to gain traction with that generation,” Johnson said.

But experts noted that even those not yet in a position to need the advice of someone dedicated to protecting and growing their wealth can still get there. Starting to commit to saving, working to keep expenses in check and adopting other prudent measures can get you down that path.

“Once those needs are met, it’s remarkable how quickly wealth grows,” Clary said. “Then the impact of good solid advice is huge.”