Here are few investing tips for GenX

September 18, 2021 12:42 AM AEST | By Rini Zachariah
Follow us on Google News:


  • GenX is the generation sandwiched between baby boomers and millennials.
  • They are characterised by high financial obligation towards their family.
  • They must know their net worth and invest in avenues such that their future expenses, family’s needs and retirement funds are taken care of.

Gen X or Generation X are people currently hovering around their late 30s or 40s and 60s. They are born after baby boomers and before the millenials. As kids they received minimal supervision from their parents. The generation was thus more impacted by peers than their parents. Also labelled as latchkey generation, they are characterised by high independence, informality and tech savviness. They have high entrepreneurial skills. They grew up at a time when women's rights were emerging and the culture of both parents working was also on a rise.

Why is investing essential for GenX?

Gen X must invest because their financial needs are many and often large in size. They have aging parents to care for and children in the college going age and all this at a time when their retirement is almost here. Sandwiched between such financial requirements, financial strength is a must and investing is therefore essential.

Retirement plan, Gen X, SIP, Mutual funds, Insurance, Investment Tips

Today Gen x is moving towards their retirement leaving back their working age

Image Source:  © Dyscoh |

Let us look at a few things that GenX must do in investing to safeguard their future-

Knowing the net worth

It is essential to evaluate the excess of their savings, retirement funds, real estate and other investments over their debts like credit cards and loans. In this step it is wise to ignore items or assets like cars that may not appreciate. It is also good to ensure that the investment avenues are doing well and fetching fair returns. Given that they are in their prime earning years, they definitely are prone to higher levels of debt and bigger credit card bills. Thus they must have a plan to tackle their level of debt.

Having a clear sense of expenses

With responsibilities of millennials and boomers on their shoulder, Gen X must know clearly where their money is being spent now and what expenses are expected in the future. This is essential for tracking if an investor is on track with the retirement spending goals.

Here are few investing tips for GenX

When discussing expenses, Gen X must be realistic and not undertake expenses that would eat into their retirement funds. For instance, it is often seen that as good parents the Gen X ends up spending more than they can afford on the tuition fees of their college going children. This is one critical aspect at this juncture of life that can take their retirement days for a ride! It is better to be sensible than just sensitive in such matters.

Eye blue chip stocks

Blue chip stocks are known for steady returns. These are shares of companies that have grown over the years and are recognised for their resilience during market troughs too. As a result these companies give stable dividends. GenX can eye a regular income in the fitire by investing in such stocks. Often blue chip stocks are highly prices and given that Gen X is high up on their career ladder, they can afford to park significant amounts in such shares. Investors can be confident about stable or escalating share holder returns. This means that they can benefit from both higher and stable dividends and capital gains.

Life insurance is a must

Often GenX is too tied up with family obligations and tend to not invest in life insurance. But at the prime of life and peak of stress, it is an essential part of their total financial wellness. At that age Gen X must invest significantly in a life insurance policy because it is necessary not just to clear off the debts and expenses of the individual. This amount is critical to contribute to the financial flows of a household in the event of untimely death of the individual. GenX policy holders can have life insurance riders included in their life insurance policy to cover their children. Once their child is of a prticular age, the rider can be made their personal life insurance policy.

Mutual funds to compound the hard earned money

Mutual funds are a very sound investment option on a long term basis. Investing systematically in with Systematic Investment Plan (SIP) in mutual funds. It is very useful to fulfil the long term financial goals by neutralising the risk associated with the wealth creation process. It is useful for compounding the hard earned money of individuals. They can choose from schemes like large cap, mid cap, small cap, dividend yield funds, contra funds or value funds depending on their investment goal, risk appetite, expectation of returns, time availability etc.

Related Read: Planning to retire like a boss? Here are five smart investment tips


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

Top ASX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK