Giving Generation X a Little Love

For an industry that prides itself on finding opportunities, wherever they may exist, it’s remarkable that Generation X has been so totally ignored by most financial services and wealth management companies.

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    Giving Generation X a Little Love

    Giving Generation X a Little Love

    You have to feel sorry for members of Generation X—they were born in the shadow of the largest generation of Americans in history. They didn’t even get a cool name, like “Baby Boomers” or “The Greatest Generation”; they just got an “X” as if to remind them of their insignificance.

    Then, just as they are entering the prime of their earning years, all prepared to make their mark, the Millennial generation (the new “largest generation of Americans ever”) enters adulthood, and the attention of media and marketers turns toward them, keeping Generation X stuck in the shadows.

    Generation X Has More Wealth Than Millennials

    For an industry that prides itself on finding opportunities, wherever they may exist, it’s remarkable that Gen X has been so totally ignored by most financial services and wealth management companies.

    It’s estimated that by 2030, Gen X wealth will approach $22 trillion—nearly double the projected wealth for the Millennial generation.1

    In fact, in 2015, 37% of Gen X members had $100,000 or more in investible assets, well above the 14% of Millnnials.2 Plus, they will receive their inheritance (of your clients’ money) much sooner than Millennials will.

    Yet, despite all this wealth, 60% of them do not work with a financial advisor.3

    Relevant Messaging for Gen X

    To create relevant messaging for Generation X, you first need to remember their formative experiences. They are a skeptical generation; they grew up looking at missing children on milk cartons, watching the Challenger explode and living through the dot com bust.

    It may come as no surprise then that, with so many lacking a financial advisor, 58% have not tried to calculate what they need to save for retirement. Encouragingly, 78% are interested in receiving financial advice.4

    Generation X may not be investment savvy, but they are comfortable owning stocks (unlike many Millennials). But, it’s important that you educate them to become more informed and that all communications, policies and pricing be totally transparent. It helps in overcoming their skeptical nature.

    Generation X exists within another “generation”—the Sandwich Generation. Advisors who can speak to how they can help them with the financial and emotional issues of simultaneously raising children and caring for aging parents will have a powerful leg-up in capturing this underserved investor.

    Sources:

    1. https://www.forbes.com/sites/davidsnider/2019/08/06/the-misunderstood-22-trillion-market/#b703574174fe
    2. https://www.forbes.com/sites/davidsnider/2019/08/06/the-misunderstood-22-trillion-market/#b703574174fe
    3. https://www.forbes.com/sites/davidrae/2019/07/10/generation-x-retirement/#5fcd69774a30
    4. https://www.ivyinvestments.com/advisor-resources/genlink/generation-x

    Please reference disclosures: https://blog.americanportfolios.com/disclosures/

    About The Author

     

    Director of Practice Management 
    631.439.4600, ext. 212 

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