Lifestyle Choices : Gen Xers are known for valuing experiences and living in the present . This generation often prioritizes spending on lifestyle choices such as travel , education and home renovations over saving for a distant retirement . While these experiences contribute to a rich and fulfilling life in the moment , they might come at the expense of long-term financial security .
So far , we discussed a few of the many factors that have hindered Gen X from saving for retirement . Now , let ’ s provide solutions to secure the financial well-being for Gen Xers !
Financial Education Initiatives : Employers , professional associations and financial institutions should collaborate to provide financial education workshops to empower individuals with the knowledge and tools to make informed financial decisions . This can significantly encourage individuals to take action and plan a roadmap to a financially secure retirement .
Employer-Sponsored Retirement Plans : Employers play a crucial role in supporting their employees ’ retirement savings . Offering competitive retirement plans such as 401 ( k ) plans , matching contributions and providing educational resources can incentivize and facilitate better retirement preparedness . Currently , there are meaningful tax credits available to offset the startup cost of employer-sponsored retirement plans for small businesses .
Professional Financial Advice : Seeking advice from financial professionals can help Gen Xers navigate the complexities of retirement planning . A Certified Financial Planner can provide personalized strategies based on individual circumstances and financial goals . Before customizing a plan for you , here is my advice to start you off . First , make a budget and stick to it . Learn how much you can save or the ways you can adjust your lifestyle so you can save at least 15 % of your gross income . If you are starting late , the 15 % is the starting point . If you have high-interest credit card debt , pay down the debt before moving on to the next step . Second , use your tax-friendly retirement vehicles like 401 ( k ) and IRA accounts to reduce tax liabilities while saving for retirement . Third , make sure to protect yourself and your family with health and life insurance . That ’ s a good start !
Gex X faces a unique set of challenges that have contributed to their struggle with retirement savings . As we recognize these obstacles , it becomes crucial for society , employers and individuals themselves to take proactive steps to address and overcome these barriers . By fostering financial literacy , promoting employer support and tackling existing debt , we can work toward ensuring that Gen Xers enjoy a more secure and comfortable retirement .
Jeff J . Kim CFP ® is a Financial Advisor of Santa Monica , California-based Gerber Kawasaki Inc ., an SECregistered investment firm with approximately ~$ 2.3B billion in assets under management as of 09 / 30 / 23 . The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual . To determine which course of action may be appropriate for you , consult your financial advisor . No strategy assures success or protects against loss . Readers shouldn ’ t buy any investment without doing their research to determine if the investments are suitable for their situation . “ All investments involve risk and one should consult a financial advisor before making any investments . Past performance is not indicative of future results .
Gerber Kawasaki Wealth & Investment Management is an investment advisor located in California . Gerber Kawasaki Wealth & Investment Management is registered with the Securities and Exchange Commission ( SEC ). Registration of an investment advisor does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission . Gerber Kawasaki only transacts business in states in which it is properly registered or is excluded or exempted from registration . A copy of Gerber Kawasaki Wealth & Investment Management ‘ s current written disclosure brochure filed with the SEC which discusses , among other things , Gerber Kawasaki Wealth & Investment Management ’ s business practices , services and fees , is available through the SEC ’ s website at : http :// www . adviserinfo . sec . gov .
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