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  • Generation X and Money: Challenges and Opportunities

    generation x and money

    If you’re one of the approximately 70+ million born between 1965 and 1978 (or the early ’80s, depending on the source), thinking about your financial future may not be a top priority. When it comes to Generation X and money, that’s understandable. According to the 17th Annual Transamerica Retirement Survey of Workers, Generation X has “entered its sandwich years, with many in the middle of raising children and looking after aging parents – while juggling their jobs. They may feel that they cannot afford to invest in their own retirement – or they may be strapped for time to plan for retirement.”

    The 2016 survey report, Perspectives on Retirement, notes that 40 percent of Generation X workers agree with the statement, “I prefer not to think about or concern myself with retirement investing until I get closer to my retirement date.” But as you probably know, by not thinking about it, you’re just delaying the inevitable and also losing out on the power of time on investments.

    Time is on Your Side

    Fortunately, even though the majority of Generation Xers were significantly impacted during the recent recession, many are now in their peak earning years and there’s still time to catch up. But first you need to determine your goal, especially if you’re one of the 52 percent of Generation X workers who says that they guessed their retirement savings needs. Just 12 percent have used a retirement calculator or completed a worksheet.The report goes on to say that one of the most important secrets to attaining retirement readiness is having a well-defined written strategy about retirement income needs, costs and expenses, and risk factors. The majority of Generation X workers (60 percent) say that they have a retirement strategy, but only 16 percent have a written plan (the other 44 percent have a plan but it is not written down).

    generation x

    Envisioning Financial Freedom Starts with Planning

    Having a simple plan that is customized for your specific goals has always been the IRC Wealth approach. In the free on-demand Webinar Wealth Made Simple (yes, really), we discuss our four simple steps, and we also offer free financial planning worksheets that you can download to further simplify the process. Another area where we advise Generation Xers to plan and communicate with intention is how to pay for college. As we say in the blog post Talking to Your Kids About College, “By deciding what you can spend and discussing it with your child before high school, you’ll set expectations and avoid disappointment down the road.” Additional blogs and podcasts on this topic include:

    Overcoming Challenges and Regaining Control

    Another area where planning can make a difference is by helping you to avoid dipping into your retirement savings. The survey reports that while 77% of Generation Xers are saving for retirement in a company-sponsored 401(k) or similar plan and/or outside the workplace, 30% have had to take a loan, early withdrawal, and/or hardship withdrawal from their retirement savings. To break this cycle, a spending plan is crucial. Knowing how much money you have coming in and going out is not meant to be discouraging, but rather help you tackle the challenges, increase your confidence, and ease uncertainty that can be caused by not knowing.With only 12 percent of Generation X reporting that they are “very confident” that they will be able to fully retire with a comfortable lifestyle, the vast majority in this demographic does have some uncertainty about their financial future. But by taking the first step to create a simple plan, you’ll soon be on the path to regain control of your money, your life and your future.

    Achieve your goals, from early retirement to selling a business

    Everyone’s situation is different; what it takes for you to be financially independent is unique to you. If you’d like to discuss any questions or concerns you have your financial life, please contact us for a no obligation consultation to see how we can help.



  • Resources wms
    Wealth Made Simple (yes, really)
    Amazon best-seller! (paperback and kindle) Wealth building is simple, if you’re doing it right. Learn how to use our proven wealth building strategies to set you on your path to financial freedom.
    Wealth Made Simple (yes, really)

    Wealth Made Simple (yes, really)

    Ready to gain control of your money? Learn the 4 steps to financial freedom in Wealth Made Simple (yes, really), a free, 60-minute webinar that will help you craft a simple plan that truly fits your situation and sets you on the path to financial freedom.
    email course
    Wealth Made Simple (yes, really)
    The Wealth Made Simple (yes, really) email course is designed to launch you on a long-term path toward financial freedom with 9 days of simple steps that will set you on your way.
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    Generation X and Money: Challenges and Opportunities

    by IRC Wealth time to read: 3 min