Generation X can be defined as
individuals born between 1966 and 1975, though many people consider individuals
born into the early to mid eighties as part of this generation.
As generation X approaches the
advent of their retirement, there's a looming sense of uncertainty. Is there a
retirement? Probably not. In fact, Gen-Xers are earning a remarkably low income.
The question is, what happened? "I try to remain in the present moment and
not live in fear of the future," says Vera Johnson, a Generation Xer. Vera
nearly lost her home in 2010, just after the housing market crashed. This was
during the recession, a time Generation Xers lost a large percentage of their
income. It would be trouble enough if people like Vera were stuck with no
retirement plan. Not only does Vera lack a retirement plan, she's barely
getting by.
Mortgage Payments
Generation X lost a lot of their
wealth between 2007 and 2010. This information is according to a Pew Economic
Mobility analysis. Prior to this, they were having troubles. In the early 2000s
there was a 67 percent drop in the Nasdaq Composite Index. This was when a lot
of Generation Xers were starting their careers. While most of them did not have
money invested in stocks, the effect that this drop had on the economy impacted
their businesses. Fast forward to 2007-2010 and Generation X is having a tough
time with the housing collapse.
Student Loans
Amidst the turmoil of successive
economic busts, student loans played an integral role in debasing the economic
growth of Generation Xers. "Under the impact of successive booms and
bursts, many Xers have struggled to afford a family or keep their home, much
less do better than their parents," says Neil Howe, co-author with William
Strauss of books on generations in American history.
The average income for 35-44
year-olds went down 9.1 percent in three years, ending in 2010. It's difficult
to make payments on necessities like student loans if you're given
circumstances do not allow for fiscal growth.
The Value of Property
After the real estate crash,
property values dropped as well. It's no surprise, either. Primary residencies
fell 21 percent. This means that a home that cost $215,000, went for an
appraised value of around $170,000. This resulted in a shift of homeowners
becoming home renters, which in turn resulted in many individuals missing out
on potential assets.
The Job Market
One of the largest challenges for financial
improvement is the limited growth in the job market. The effects of a market
with limited growth potential are obvious. Without the generation of income,
individuals will be unable to amass any kind of wealth. The impact on the
economy? Well, Generation Xers who are out of a job or newly hired are likely
to spend less. It will be necessary to save and store money. If the economy
does not have individuals putting money into it, it will hurt. Therefore, it's
plain to see the rippling effect across the country.
Consider precious metals as a kind
of investment opportunity that lasts through the perils of an uncertain economy.
A solution to the Generation Xers out there is to save hard and invest
carefully.
