I love studies because I love seeing the numbers of how people behave. Here’s a study that compares Generation X/Y (average age 37, hereafter termed Gen x’ers) with Baby Boomers (average age 65, hereafter termed Boomers) and how they live with their money.
Feel wealthy? It takes less money for Gen Xers to feel wealthy, about 19% less. They both still have in excess of one million dollars but the Boomers need 1.61 million and Gen Xers ‘only’ need 1.31 million to feel wealthy.
What does money mean to you?- More than half of Boomers see money as security, and thought that’s important to Gen Xers, Gen Xers feel that money means opportunity and success. Besides security, Boomers see money as also providing comfort.
Use the cash – Gen Xers use their money for living. Besides doing what Boomers do- take foreign annual vacations- Gen Xers fly first class, own vacation homes (three times as many as Boomers) and more than 4 times as many Gen Xers have country club memberships as compared to Boomers. All their spending doesn not indicate that want to have nothing to pass on. As the appreciative beneficiaries of inheritances, Gen Xers want to leave as much money as possible to heirs.
Charity – You may be getting the impression that for the Gen Xers the money is all about THEM, but that would be an incorrect assumption. Based on the average amount given in donations to charities, the younger millionaires give 4.5 times as much money as Boomers. And when it comes to giving of their time, once again Gen Xers serve on boards almost twice as much as older millionaires.
Want an advisor? – Both groups love their advisors. Gen Xers feel more knowledgeable about investing and thus more confident in their investing decisions.
People aren’t living life wrong just because they do it differently. Our generations have an impact on how we live and give.
Handout from Fidelity at the National conference last week &
Marion Syversen, MBA
Check out our website that includes weekly streaming videos
Voted Bangor Region’s Best Financial Planning Firm since 2008.
Only securities and advisory services offered through Wall Street Financial Group, Inc. Registered Investment Advisor. Member FINRA/SIPC. Wall Street Financial Group, Inc. and Norumbega Financial are separate entities, independently owned and operated. (CR9544)