Generation X feel they are in excellent health and incorporate exercise and good dietary practices into everyday life. They are raising children and may still be building careers on which they will depend for a few more decades. But this group is approaching middle age and most (63 percent) have one or both parents still living. While care giving is not yet a priority to this group, it is something you can help them keep on their radar. Educate them about the overall costs of long-term care, help them identify choices available to them, and assist them in making informed decisions so they can avoid the late-in-life financial surprises.
• Structure debt reduction and cash-flow strategies.
What do you get when you partner inadequate retirement savings with college-age children and older parents requiring financial assistance, and then add in “upside down” mortgage debt along with credit card debt? Generation X is attempting to answer that mathematic equation.
With underfunded retirement plans and questionable viability of Social Security, this generation seeks alternatives to help them achieve a secure retirement. Work with them to analyze their current employer plans and assess any rollover accounts they may hold. Partner with them to create steps toward reducing their overall debt, including creating a multi-year plan to reduce expenditures and channel income toward savings opportunities. By educating them on how small adjustments can make a difference in their financial picture, you can help them move forward toward achieving their financial goals.
Providing advice and assistance in just a few key areas of concern for Generation X may provide the groundwork you need to create the level of trust and support they seek.
Matt Matrisian is a senior vice president and Director of Practice Management at Genworth Wealth Management.