Happy Sunday, and welcome to the first Benzinga financial advisor newsletter of 2025!

Starting with January 1, children born now count as members of Generation Beta - a cohort that will face new challenges and an uncertain future. Today, we’re looking at how financial advisors can best help their parents start planning now.

So, let’s get to it!

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INDUSTRY CHATTER

With The New Generation Beta Come New Financial Planning Challenges - And Opportunities

January 1, 2025, marks the first possible birthdate for Generation Beta. It's also a unique opportunity for financial advisors to guide new parents through comprehensive long-term planning, especially as Prudential Financial's latest research shows that 58% of current and future parents believe Generation Beta may never retire.

With 80% of Americans holding that retirement planning should begin at birth, that means financial advisors should start work with parents and prospective parents of Generation Beta as soon as possible.

Generation Beta Will Do Work That Doesn’t Even Exist Yet

The financial landscape these children, and their parents, will navigate differs significantly from previous generations. According to Prudential's findings, 86% of respondents anticipate these children will work in yet-to-be-created professions, while increased life expectancy could dramatically alter traditional retirement trajectories.

These shifting dynamics demand that advisors expand their traditional planning approach. While new parents typically focus on immediate concerns like healthcare coverage and life insurance, financial professionals must help them develop more comprehensive strategies. This includes creating flexible investment frameworks that can adapt to evolving career patterns and potentially extended lifespans.

Plan And Save For Flexibility

Brandon Goldstein, ChFC, a financial planner with Prudential Financial, emphasizes the importance of immediate action: "While you can't predict the future, you can plan for it from day one." This perspective underscores the need for advisors to guide families in reassessing budgets, establishing long-term savings goals, and accounting for rising costs across multiple decades.

The power of early planning becomes evident through Prudential's Beta Baby Bonus initiative, which demonstrates how a modest initial investment of $150 - which the company is giving to any baby born on January 1, 2025 - could grow to $100,000 over 70 years. This illustrates the crucial role advisors play in helping families understand and harness long-term compound growth.

Financial professionals must proactively address these planning considerations with new parents, ensuring Generation Beta's financial future begins with informed, strategic decisions. The challenge lies not just in traditional retirement planning, but in preparing for a fundamentally different financial future that may require new planning paradigms and investment approaches.

MARKET RECAP

Goodbye Santa Rally, Tesla Falters On Deliveries, Investors Flee Bonds Ahead Of Trump's Second Term: This Week In The Market

With the start of the new year, investors bid farewell to the Santa Claus Rally, as the U.S. stock market extended its weak momentum into January, logging five consecutive losing sessions, the longest negative streak since April.

Just weeks before Donald Trump's second presidential term begins, a sense of uncertainty looms large as investors await clarity on policies that could reshape the American economy and beyond.

The bond market is flashing warning signs that could ripple across the economy. Treasury yields have continued their sharp ascent, with the 30-year yield hitting 4.8%, its highest level in over a year. Rising yields are often seen as a harbinger of higher borrowing costs and potential inflationary pressures, and investors are taking notice.

Reflecting this unease, a widely tracked long-dated Treasury exchange traded fund — the iShares 20+ Year Treasury Bond ETF (TLT) — saw record monthly outflows in December, a signal of how bond investors are bracing for volatility ahead of Trump's return to the Oval Office.

Higher bond yields typically challenge the stock market, as they make debt financing more expensive for companies while reducing the relative attractiveness of equities.

At the individual company level, Tesla Inc. (TSLA) suffered its worst weekly performance since late October after reporting 2024 deliveries that were 1% lower than the previous year, marking the first year-over-year decline in the company's history. Analysts view 2025 as a pivotal year for the EV leader to address concerns over demand, competition and its growth trajectory.

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Biden Blocks Takeover

President Joe Biden blocked the $14.9 billion takeover of United States Steel Corp. (X) by Japan’s Nippon Steel Corp, citing national security concerns. Following the decision, U.S. Steel shares plummeted on Friday, reflecting investor disappointment over the collapsed deal and the uncertainty surrounding the company's future.

Squid Game Mania

Netflix Inc. (NFLX)’s “Squid Game” Season 2 shattered debut records, drawing over 100 million global viewers within days.

Ford Sales Surge

Automaker Ford Motor Co. (F) reported a 9% increase in total U.S. sales last quarter, driven by strong demand for electric vehicles and popular truck models.

THE WEEK AHEAD

New Year and housing numbers in a slow week

Economic Data

• Monday: S&P global services PMI

• Tuesday: US job openings

• Wednesday: US 10-year Treasury auction, ADP nonfarm employment

• Thursday: US wholesale inventories

• Friday: USDA’s annual estimates on supply and demand of agriculture commodities

Earnings

• Monday: Commercial Metals (CMC)

• Tuesday: Cal-Maine Foods (CALM), RPM International (RPM)

• Wednesday: Albertsons Companies (ACI), Jefferies Financial Group (JEF)

• Thursday: Walgreens Boots Allliance (WBA), Constellation Brands (STZ)

• Friday: Delta Air Lines (DAL)

Click here for the full calendar of economic data and earnings reports.

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