Lesson #11 Echo Boomer, child of Baby Boomer.

En suivant le chemin qui s’appelle plus tard, nous arrivons sur la place qui s’appelle Jamais. (Sénèque) google translate anyone?

lesson #12 Millennial

Echo Boomers (Millennials) be warned: If you don’t own life insurance you need a wake-up call text!

Now that you find yourself aiming the cursor towards the back button, the red dot or CTRL+W…stop! READ ON! Trust me, It will be worth your time!

Fun Facts: Millennials are a demographic cohort that typically defined by the early 1980’s as starting birth years, up to the early 2000’s as ending birth years. This group consists children born of the baby boomer’s generation. See I fall in the Generation X era, also called Baby Bust (even though this is the first time I use that term).

It’s no secret that 20- and 30-somethings are holding back on the traditional milestones that would warrant buying life insurance. Their parents probably got married, bought and home and then started a family. Millennials have kids first, and marriage (if it happens at all) comes later on. This age group has also postponed homeownership, especially in areas where the housing prices are 8 to 10 times or more their yearly household income. My parents purchased their first home two weeks before they got married and had two kids before 28 years old.

I know that most millennials have concerns that the previous generation didn’t. Student loans and college debt is huge in Canada. They are trying to save for retirement, pay off the student debt and save for a down payment. Insurance is a monthly expense that they cannot justify. I’m here to urge you to reconsider. Ask yourself these questions:

  • who will get stuck with your final expenses bill? 
  • who gets stuck with your debt?

I was speaking to François the other day (fictional name). He’s 27 years old, makes over $100 000 a year and saddled with debt. He tells me that he doesn’t need insurance because if he dies, they can just repossess his stuff. (He has no concept of how things work and I need to help him). He doesn’t care about funeral costs or anything else. I listen for a while and then I start asking a bunch of questions. When I finish my bombardment, I ascertain that his father co-signed on a loan that is still outstanding, that he would like to purchase a home someday, that he plans on proposing to his girlfriend soon and that he would eventually like to have a child. Houston, we have a problem!

So, I run two illustrations. 1 depicting his current age and the other assuming that he’s five years older. There is hardly any difference with term insurance at this age, but with permanent insurance can be significantly higher (depends on the variables). François was shocked the increase in premiums. I did a bang-up job at giving Julio all the in’s and out’s and many reasons why he should insure himself. Honestly, I don’t think anyone could have done better, and François still decided that he wasn’t ready to purchase life insurance. Why?

Procrastination!

lesson 12 image 1

*Millennials are procrastinators  when it comes to making important decisions. The proof is in the statistics. Unless they are convinced about how a product will make their lives better now, they will delay buying or skip the purchase altogether. It’s way easier to sell them insurance on their cell phone because they can see the value immediately. *proven fact… I seen it on Wikipedia

As a father of a millennial, it can be very frustrating sometimes. Our son left and came back multiple times now. He’s currently 22 years old, doesn’t pay rent, doesn’t own a vehicle and doesn’t do much around the house. He goes to work, goes to the gym, eats our food, watches Netflix, is on his phone and goes out drinking with his friends on weekends. Oh and he’s managed to save a good sum of money, in a short period because he doesn’t pay for anything. Sound familiar? He’s a brilliant young man that could do anything he wanted, and we are happy that he’s finally decided to go to school this fall. When I was his age, I also lived at home, but I paid room & board. I had a car, and I ate out most of the time. I also had a cell phone (see picture) Bahahaha -The war machine!

lesson #12 image 3 cell phone

Now I can’t get mad or upset because he isn’t following the same path as we did, but I can guide him on his journey. I’m reminded of a  quote a former mentor shared with me. N’allez pas là où le chemin peut mener. Allez là où il n’y a pas de chemin et laissez une trace. (Ralph Waldo Emerson) (You probably forgot I was a francophone) Loosely translated it means don’t follow someone else’s path, blaze a new trail. That said, I also know that financial literacy starts at a young age and we have to make up for lost time. So I convinced our son to start an RRSP now and to purchase a small permanent insurance policy on himself. If he’s not going to pay rent, he might as well put some of that money to good use! I’m convinced that the millennial generation will be just fine, but I believe that they still need some guidance when it comes to certain things. It’s time to stop procrastinating about Life Insurance and retirement because it comes faster than we think.

lesson#12 image 2

Let’s recap, in today’s lesson I learned:

  1. Procrastination is the thief of time and time is money!
  2. Keep Millennials broke with savings, investments, and insurance instead of stuff!
  3. Financial literacy is the road to improving financial well-being
  4. Don’t be like François

*Note to self: you need to create a free workshop to teach more people about Financial Literacy.

 I’m a smart guy, but I’m also common sense oriented. When I was 20, I could see the validity of purchasing a life insurance product, but I couldn’t justify the expense either. It wasn’t until I met my wife that I finally got my policy. If I would have purchased my policy at 25 like my father suggested, I could probably have put it on premium vacation today (that means I can stop paying for it, but still be insured), but seeing that I waited, I’ll have to pay for another ten years. The same coverage also cost me almost $8000 more over 20 years. Shoulda! coulda! woulda! I know that only amounts to about $40 a month more, but think of it this way: I pick up a Med coffee at Tim Horton’s almost every day of the week @$1.70 a pop…do the math!

I’ll learn ya!

Broke-A$$-teacher

  • this was my upgraded cell phone -Good times!

Lesson #12 image 4 cell phone

https://www.protective.com/learning-center/life-insurance/life-insurance-basics/five-reasons-why-millennials-need-to-buy-life-insurance/

https://www.populardirect.com/articles/2017/04/26/why-millennials-need-life-insurance/

https://smartasset.com/life-insurance/top-7-reasons-why-millennials-need-life-insurance

http://www.barrons.com/articles/do-millennials-need-life-insurance-1490132076

https://www.careerplanner.com/Career-Articles/Generations.cfm

 

image credits

https://brzustowskiluc.files.wordpress.com/2016/12/procrastination_full_155952698

https://1.bp.blogspot.com/-1nVNUFi1Or8/WS-P8YQpZUI/AAAAAAAATSQ/NK9kLtBzrGExZCW7Pb6o0ALQNXBcXHn1ACLcB/s640/2

http://www.rebeccacoleman.ca/wp-content/uploads/2015/08/hello-my-name-is-mllennial–e1439395510534

http://www.ima-shop.com/images/Motorola_Startac_70_2

main image http://hr-gazette.com/wp-content/uploads/2016/12/millennials

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