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Baby Boomers, Gen-X Obtained Wealth Differently

Decisions made by a financial advisor get credit for wealth accumulation among Baby Boomers, Gen-X investors.

| BY Kent McDill


Generation X investors give more credit to family connections and inheritance as factors in obtaining wealth than most other investors, according to a Spectrem’s Millionaire Corner report.

In the Millionaire Corner Ezine Baby Boomers vs. Gen X, investors were asked to list the many factors that allowed them to obtain their current wealth level. Investors were segmented as those with a net worth under $1 million and those with a net worth above $1 million.

In both segments, family connections and inheritance were both much higher among Gen X investors than in any other age segment. Twenty percent of all investors listed “family connections’’ as a factor, but all Gen X-ers were higher than that.

Among investors with a net worth under $1 million, 26 percent of Gen X males and 28 percent of Gen X females selected family connections. Among investors with a net worth over $1 million, 28 percent of males and 27 percent of females listed family connections as a factor in obtaining wealth.

The inheritance factor was only noteworthy among Gen X investors with a net worth above $1 million. While the total of investors of all age groups was 19 percent, 37 percent of Gen X females and 29 percent of Gen X males with a net worth over $1 million reported inheritance as a factor.

The same segment reported a higher than average credit to education as a factor in obtaining wealth. The total percentage was 9 percent, but 33 percent of Gen X females with a net worth over $1 million and 25 percent of males with a net worth over $1 million selected education as a factor.

Investors with a net worth over $1 million are more likely to credit “decisions made by my financial advisor” as a factor in obtaining wealth. Fifty-four percent of all investors credit financial advisors, but 66 percent of Gen X females and 66 percent of Baby Boomer males with a net worth over $1 million give credit to financial advisor decisions.

The one area where Gen X females with a net worth over $1 million were less likely to give credit was in taking risk. Seventy-eight percent of all investors selected taking risk as a factor, but only 65 percent of Gen X females with a net worth over $1 million gave credit to risk-taking.

Investors with a net worth under $1 million give less credit to all factors, perhaps because they have less wealth. For instance, among Baby Boomer females, only 25 percent credit “smart investing” (the total was 37 percent), and only 71 percent credit “being in the right place at the right time” (82 percent of the total investor population selected that).

In almost all categories, male Baby Boomers with a net worth under $1 million were less likely than most investors to credit factors in obtaining wealth. Where 37 percent of all investors credit “smart investing’’ only 26 percent of male Baby Boomers with a net worth under $1 million do so.

 



About the Author


Kent McDill

kmcdill@spectrem.com

Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.

In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.

McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.

McDill is the father of four children, and an active fan of soccer, Jimmy  Buffett and all things Disney.