by Keith Gustafson CFA and Christopher M ONeill PhD CFA CFP ®, FRM ®, ChFC ®, Abstract, Much of the seminal work on international investing in the context of asset allocation and mean variance optimization was written based upon a somewhat limited broad-based data set With just over 50 years of MSCI data now in hand we reexamine the characteristics of the data with subsets for the first 25 years and latest 25 years plus also utilizing the earlier historical data to create an…

Members of the Silent Generation Baby Boomers and some of Generation X may now reflect on their life course and say “back in my day” when sharing financial wisdom with their family’s youth However many people may not be aware of how much things have changed thereby presenting a barrier to achieving common goals such as education housing and having a family Individuals in Generations Y (…, Leaving home in early adulthood,   According to a 2022 study by the Pew Research Center 50% of young adults ages 18–29 live at home with their parents compared to 38% in 2000 1  US Census Bureau statistics show that this trend has been steadily increasing over the past 60 years 2 Increasing housing costs such as rent and utilities as well as student loan debt are common financial barriers that prevent young adults from leaving…, Establishing a career, Although individuals continue to launch into careers in their 20’s the lifespan of a career has decreased in recent years We no longer live in a culture where working at the same company or in the same field for 30 years is the norm It is estimated that most people will have 12 jobs during their lives In 2022 32% of individuals ages 25 to 44 considered a career change Since starting their first…, Getting married , As years progress the average age for first-time marriages is increasing Currently the average marriage age for men and women is 30 and 28 respectively This is up from ages 23 and 20 for men and women respectively in 1960 4 Individuals ages 55+ represent 36% of first-time marriages 5 Many marriages are occurring at a later age as individuals take longer to prepare for and launch their careers as…, Purchasing a home,   Purchasing a home is a major life decision that has historically created benefits such as equity as property values increase However home ownership is harder to obtain as prices outpace the rate of income growth In 2024 the average age of a first-time home buyer was 38 up from 35 in 2023 6, Having children,   In recent decades the age of new parents has increased globally Currently the average age of first-time mothers and fathers in the US is 27 and 31 up from 21 and 27 respectively in 1972 7 The delay in parenting has largely been influenced by individuals desire to complete educational and career objectives before focusing on a family Completing such goals are now viewed as necessary before…, Funding education,   Having children has been negatively impacted by the cost of raising a family of which education is among the most challenging In a 2023 survey nearly 70% of parents said they are worried about having enough money compared to 63% in 2021 9  In recent decades the inflation rate for college tuition has well exceeded the national average College tuition and fees have grown twice as fast as the…, Retirement,   Workers in the United States retire at around age 64 In recent years the average retirement age has risen In 1986 the average retirement age for men and women was about 62 and 57 respectively By 2021 the average retirement age for men had climbed to approximately 65 and for women approximately 63 11 12 Many people plan to retire early until it is time to retire Retirement has become more…, Conclusion,   Key life accomplishments are more challenging and may take longer given greater financial and life complexity Historically key milestones such as paying for education purchasing a home getting married and retirement have best been achieved with financial planning Financial planning has been shown to improve financial success and life satisfaction and may be needed more now than in past decades…, Seek the help of a trusted financial advisor, — Trusted advisors such as financial advisors accountants and attorneys can help your evaluate options and demystify your financial future as well as reduce risk that may occur from changing family dynamics and career choices  , Pay for financial planning as a gift to young adult children, — This may help them launch into adult independence earlier and develop a plan and resources for future success , Plan for increased longevity, — Individuals are living longer and therefore require more resources throughout their lifetime Healthcare can be a major expense especially in the later stages of life Developing a plan to stay healthier longer may be one of the best ways to maintain financial freedom and improve life satisfaction long term   Published February 2025 1 https//wwwpewresearchorg/short-reads/2022/08/24/americans-more…

Whether you have been in the workforce for the last three years or are a recent graduate here are some quick financial planning tips to jumpstart your wealth accumulation journey,  , Pay yourself first, A good rule of thumb for savings and budgeting is the 50/30/20 rule 50% of income is spent on needs 30% of your income is spent on wants and 20% of your income is saved However if you would like to save aggressively we would recommend a 50/20/30 rule  50% spent on needs 20% spent on wants and 30% saved, Set up your accounts, Over the course of your career strive to have four core accounts that are regularly funded Checking Savings 401(k or 403(b Discretionary IRA or Roth IRA, Live beneath your means, Set yourself up early by creating healthy habits around how much you spend on larger expenses such as rent a car and trips Rather than utilizing 100% of what you need to spend on these expenses aim to use 70-80% of your monthly budget, Create a monthly budget with short- and long- term goals, Getting into the habit of budgeting will allow you to truly analyze how much money you are spending rather than just taking an estimation  We recommend saving at least 50% of your bonus annually, Understand your company’s benefits, Many people no matter what age don’t take the time to learn their company’s benefits Knowledge is power— understanding what is available to you right from the start will help guide your financial planning decisions We recommend reviewing for the below benefits before you start or take on a new job 401(k or 403(b Plans Health Savings Account (HSA Flexible Spending Account (FSA Commuter and/or work…, Learn investing basics, Taking the time to learn the basics of investing will set you up in the long run Below are a few facts we believe can help shape a good investing strategy at an early age The S&P 500 Index average rate of return is 10%¹ Know the Rule of 72 The rule of 72 tells you how long it will take an investment to double based on the rate of return (as an integer, Max out your 401(k plan, The limit on employee elective deferrals for a traditional and safe harbor plan is $23500 in 2025 Know the 401(k matching policy at your company and take full advantage of it If you can’t max out add a percentage of each raise received up until the matching point is reached, Next steps, While all of this may seem like a lot to do now it is just the tip of the iceberg when it comes to saving and investing The biggest take away we want you to have is this Simply to diligently put small amounts of dollars away to fund your lifestyle once you have retired   1 The Standard and Poor’s 500 or simply the S&P 500 is a stock market index tracking the stock performance of 500 large…

Individuals and families have different wealth planning and investment needs Finding a financial advisor that is the “right fit” for you can require patience and diligence, For 88 years Mesirow Wealth Management has been helping individuals and families make the financial decisions that support their most important life decisions We listen We understand We help If you or someone you know are looking for a trusted financial advisor this guide is designed to help you ask the right questions and determine the right fit, Questions to ask your financial advisor, Are you held to the fiduciary standard Fiduciaries are required to act with good judgment and due diligence be accountable for the long-term sustainability and ongoing appropriateness of investment recommendations provide full and fair disclosure and avoid conflicts of interest It might sound odd but not all advisors are fiduciaries and they might only be responsible for making sure an investment…, Advantages to partnering with a wealth advisor/financial planner, As you become more successful your financial goals may become more complex A knowledgeable trusted advisor can save you time helping you to avoid costly financial mistakes Your advisor can help you articulate your financial goals and establish a plan to get you there Procrastination and indecision when it comes to making financial decisions are common your advisor can help you remain disciplined…, Published January 2025