If you had to label how Generation X’s financial situation is portrayed, the phrase “dazed and confused” springs to mind.
On one hand, we’re increasingly in positions of power and, according to Deloitte, on track to experience the highest increase in the share of wealth — from under 14% of total net worth to 31% by 2030. So we’re killing it, right?
Yeah … no. We constantly hear how we have the most debt, are in a financial sandwich between our parents and kids, and have miles to go before we can even think about retirement.
So while we’re not the kind to enjoy being told we have to play catch-up, the truth is that as a group that may live significantly longer, we do need to plan for financial longevity.
The Nest Egg Principle
Your fiscal planning approach shouldn’t necessarily come from a pop culture reference, but The Nest Egg Principle pretty much sums up what we were all taught:
The egg is a protector like a god, and we sit under the nest egg and we are protected by it. Without it, no protection.
The angst over not having enough saved is real. A recent survey of Gen-Xers across all income levels shows that more than half of us say we lack the knowledge to manage our own finances correctly.
Moreover, 70-percent of us see financial planning as either moderately to extremely complex, and 56-percent report having major anxiety about managing money. And while we happily use technology to manage most aspects of our lives, a mere seven percent said that they use digital financial tools.
The verdict? Almost all surveyed said they’d be open to working with a financial advisor, if they could find the right one.
How to find your financial advisor
Before you even think about how to approach finding the right person, consider what you really need. It can run the gamut between a full-on plan and regular check-ins with an accountability partner to an occasional arrangement.
The first step is to get your goals on paper, and then look for the right fit, taking care to check on their certification. Also important to note is if a potential advisor is independent or work for a specific company and only sell their products.
Finally, consider working with a fiduciary, who is bound by law to consider your best interests first, rather than a financial planner who is not legally obligated as such. While there are fees involved, you can ask to see how that works out over time, to ensure your investment is small in comparison to how your nest egg grows.
Because after all, we’re hatching plans to keep going, and that will take some doing.
- Why More Gen Xers Prefer Professional Financial Advice (Financial Advisor magazine)
- GEN X Time To Get Serious About Retirement Planning (Forbes)
