Research from The Phoenix Companies found that Gen Xers are a contradiction-they're the wealthiest group, but they're also the most pessimistic. "They see clouds on the horizon regarding their financial future," says Gresham. The reason for this pessimism, he says, is that baby boomers and the generation before them enjoyed three things that the Gen Xers say they might not: a home whose value is greater than what they owe on it; stable Social Security and postretirement medical coverage benefits; and a defined-benefit pension plan. "Take away all three, and it's not a pretty picture," Gresham says.
That provides an opportunity for advisors. Some people believe clients are more comfortable dealing with advisors in their own age group, and vice versa. But Gresham says that's not necessarily true, and that many Gen Xers want advice from older advisors who've been through the wars and can lend their perspective. "An advisor can know what's ahead for them better than they do," he says.