Wednesday, July 24, 2024

The Differences Between Boomers and Gen X When It Comes to Finances

You often hear a lot about Millennials compared to baby boomers, but Gen X often seem to be overlooked. Gen X (born between 1965 and 1980) who experienced the Great Recession and boomers, who experienced the inflation of the 70s, were both impacted by the pandemic—as every generation was. The impact of the pandemic on each of these two generations differs, as does of course how they approach spending, investing and saving their money. A recent roundup from Yahoo Finance based on insights from financial experts who work with people from both generations reveals some interesting findings.

Who is more risk averse?

Boomers are more gun shy when it comes to investing. This is because they have parents and relatives who were impacted by the Great Depression. The fear and anxiety their parents or relatives felt is something that has trickled down to them making them less tolerant of risk, says Michael Shea, certified financial planner (CFP) with Applied Capital in Nashville, Tennessee, in the Yahoo Finance article.

Who is more keen on investing in real estate?

When it comes to real estate, Gen X and boomers vary greatly in their interest in investing in it. Adam Garcia is the CEO at investing site The Stock Dork shares in the article that 45 percent of Gen Xers want to buy a home, whereas a mere 15 percent of boomers want to put more money into real estate. But, of course, this is very much tied to their age and stage in life and age versus their investment philosophy.

For more insights on how these two generations differ in their investing, you can access the article here.

Read more:

How the Pandemic Has Impacted Canadians’ Retirement Plans

Don’t Overlook Long-Term Care Expenses When Planning Inheritances

Older Americans Have a Stockpile of Wealth—and They’re Starting to Dole It Out

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