Gen X-ers seem to be total slackers when it comes to saving for their retirement. Building a nest egg isn’t a huge priority for a generation of Americans coping with student loans and an uncertain job market.
According to a report by Pew Charitable Trusts in 2013, those born between 1966 and 1975 lost the most wealth during the Great Recession compared to other generations. On average, these unlucky souls lost 45% (or an average of $33,000) of their funds during the economic downturn between 2007 and 2010,
MainStreet.com interviewed Kimberly Clouse, Covestor Advisory Board Chair and founder of Via Global Advisors, for an article about this disturbing trend. Here’s an edited excerpt:
The fact that Gen X-ers lost nearly 45% of their wealth is “staggering” and only reinforces how important it is that Gen X-ers rebuild their financial foundation, according to Clouse.
Gen X investors should avoid high fee investment products and invest in lower cost ETFs and mutual funds since management fees are one of the relatively few factors that an investor can control, she said.
“The less you pay in fees, the more money you keep in your pocket,” Clouse said. “For a Gen X-er who is rebuilding her financial life, paying 0% versus 1% over a ten-year period can make a big difference in overall returns.”
Covestor recently unveiled Core Portfolios that give investors a more diversified exposure to the markets using ETFs and don’t charge any management fees. Investors only pay the expense ratios of the underlying ETFs and trading commissions when the portfolios are initially purchased and periodically rebalanced.
To learn more about how Covestor works, contact our Client Advisers at firstname.lastname@example.org or 1.866.825.3005. Or you can try Covestor’s services with a free trial account.
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