5 reasons why advisers should be targeting Gen X clients

5 reasons why advisers should be targeting Gen X clients
The case for shifting client prospecting away from baby boomers and millennials, toward the proverbial Jan Brady of the generations
MAY 13, 2015
If the three largest generation cohorts were the sisters from “The Brady Bunch,” the baby boomers would be Marcia, the oldest and most popular. The millennials would be Cindy, the youngest, needing the most attention. And the forgotten middle child, Generation X, would likely be Jan. Gen X has seemingly become lost in the sibling shadows of the baby boomers and millennials. Many financial advisers have rushed to embrace the millennials as the next big holders of wealth and influence in the economy, and have been courting baby boomers for the last 20 or so years. But what about Generation X — why have they been all but left behind? The Gen X opportunity Gen Xers are loosely defined as those who were born between 1965 and 1976, making them 38 to 50 years old today. Think Robert Downey Jr. (born in 1965) on the older end of the scale and Peyton Manning (born in 1976) on the younger end. There are an estimated 50 million members of Gen X, compared with approximately 75 million baby boomers and 75 million millennials. (Related read: Getting it right with Gen X will better prepare advisers for millennials) From my perspective, there are five main reasons why advisers should begin (or continue) to target Gen Xers as long-term clients: 1. Many CEOs are Gen Xers. Approximately 68% of Inc. 500 CEOs are from Gen X. Many Gen Xers are climbing the corporate ladder and are poised to take over leadership roles from their baby boomer bosses. They are also nearing their peak earning years — and retirement is beginning to loom on the horizon. 2. They've been through many market cycles. When you ask a millennial client what they think of the stock market, you may get a response about 2008 and how much they value their cash stash. Gen X has already been through the market crash of 1987, the turmoil of the early 2000s, and the financial and housing crises of 2008. They understand that the market goes through cycles and that staying invested through cycles is rewarding. They have also seen the baby boomers struggle to attain a comfortable retirement, and want to do things differently. 3. Gen Xers are ignored by the media — and by most advisers. How many advertisements are either focused on the young tech-savvy generation or those in retirement? When was the last time you saw an ad specifically targeting Gen X? Many advisers are claiming to focus on millennial clients, but very few have chosen Gen X as a niche. 4. There is an urgent financial planning need. Gen Xers were hit hard by the housing crisis. Many bought and sold homes at the wrong time, oftentimes overextending themselves financially in the process. According to a study from The Pew Charitable Trusts, about three-quarters of Gen Xers had higher family incomes than their parents did at the same age — but only about a third of them had higher wealth. Many are shunning stocks and clinging to low-interest investments like certificates of deposit and savings accounts. 5. The wealth transfer is happening right now. Approximately $30 trillion will be transferred to Gen X and millennials over the next 30 years. Gen Xers will likely see the large wealth transfers occur in the next 10 to 20 years, while the millennials will have to wait a bit longer to get their big break. So why aren't advisers spending more time targeting and courting the Gen Xers? Maybe it's time to approach the proverbial Jan Brady of the generation cohorts. Grant Webster is senior wealth manager at AKT Wealth Advisors

Latest News

The hidden currency risk in global investing: what advisors need to know
The hidden currency risk in global investing: what advisors need to know

For those seeking international exposure amid economic uncertainty, understanding the impact of the US dollar's strength over other currencies is more important than ever.

CFP Board warns of tax "tipping point" as TCJA expiration puts financial plans at risk
CFP Board warns of tax "tipping point" as TCJA expiration puts financial plans at risk

With nearly nine in 10 seeing danger to clients' retirement income and legacy plans, among others, CFP professionals are urging strategic planning pivots and tax perks for advice-seekers.

Fed Day focus fades as Trump keeps stock markets watching
Fed Day focus fades as Trump keeps stock markets watching

As policymakers convene for their latest two-day meeting, investors are shifting their attention from elevated interest rates to growth concerns and tariff worries.

IRS eases off on some audits with retrenchments giving way to AI
IRS eases off on some audits with retrenchments giving way to AI

While he hasn't laid out a clear plan, Treasury Secretary Scott Bessent has gone on record touting "the great AI revolution" in improving the agency's tax collections and customer service.

More than three-quarters of advisors to embrace fee models by 2026, Cerulli says
More than three-quarters of advisors to embrace fee models by 2026, Cerulli says

Momentum continues for fee-based compensation as BD advisors ditch commissions and alternative compensation schemes emerge to lure diverse clientele.

SPONSORED Beyond the all-in-one: Why specialization is key in wealth tech

In an industry of broad solutions, firms like intelliflo prove 'you just need tools that play well together'

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies