If you are Gen X then you may be financially stuck.

If you are Gen X then you may be financially stuck.

Yes we  read today a report on Gen X written by a financial journalist James Dunn.

He concludes & we summarise. You may email us for the full article if you wish.

·         There are 4.4 million or  21% of you

·         You are the computer generation as that is when the PC arrived.

·         You are more idealistic than your parents. You remember that your parents were retrenched & so you would like to place lifestyle before work.

·         You because of depressed job markets when you graduated are trapped as your parents into a mortgage & also with a HECS debt.

·         You consider yourself as a generation with principles such as wanting overseas companies to care for their employees.

·         You care for the environment.

·         You like good quality products but to be affordable.

·         You have more debt and less assets than previous generations.  ‘Huge Debts’

·         You  pay more tax (on average) than your predecessors and work longer hours - and both parents work.

·         You fund not only your own retirement but those of previous generations as well.

·         You are the cohort most affected by recession according to demographer and partner at KPMG, Bernard Salt.

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·         You are mostly aged 30-something, and at that stage in life, the average Australia household is committed to marriage, children and a mortgage. From about 33 to about 43, says Salt, the typical household drops from two full-time incomes to one or one-and-a-half incomes.

You "always feel like they're in the red," with over one-third admitting they have to scrimp and save just to make ends meet.

·         You or 1/3 of you said their savings would only last two months if they were to lose their jobs.

·         You or 1/3 of you keep cash in low-interest everyday savings accounts:

·         You  as the most demanding of Australian employees, being the most likely to ask for an impressive-sounding title, more money and more flexible working hours.

·         You still want to get married and have kids, but you generally do it later in life.

·         You are big believers in the 'sea-change' and 'tree-change' phenomenon  & will seek to escape salary-slavery to 'find themselves' and their true vocation.

·         You are not as healthy as you think & you are  already on the path to becoming more obese than your baby-boomer parents..

·         You have had most of your working lives so far with the Superannuation Guarantee (SG) putting away 9 per cent of their wages into super & hold more than two-fifths of all superannuation balances - and will be the dominant owners of super within a few years.

·         You have seen two major crashes - the 2000 "tech wreck" and the ongoing slow burn of the GFC/European debt crisis/deleveraging bear market.  

·         You question the certainties preached by the Baby Boomers, on over-reliance on managed funds and blind faith in the long-term return from the stock market can do.  Self-managed super and the individual control that it implies is a concept that might have been invented for you.

·         Generation X is not going to be satisfied with being asked to take an investment strategy, or proposed use of certain investment vehicles, on trust – you are a far more knowledgeable and savvy group than yours Baby Boomer parents, and you will need convincing that the advice it receives is highly individualised.

 

If this is you then do we have a solution for you. Our PCMS* strategy reduces your debt faster, the debt is subsidised by the taxx man & we build a portfolio outside super.

You might need to read ‘Making your dreams come true. The six secrets to financial freedom’.

There always parameters that you need  to satisfy us before we can help you E.G.

·         can you save over a year which means do you have no credit card debt today?

·         Can you maintain a yearly budget over time?

·         Do you have investment knowledge & an assertive ‘risk profile’?

·         Do you have reasonable equity & we don’t like rental property due to the additional debt of say 400,000 is absurd?

·         If so then we may have a solution for you but no promises as we are very fussy.

·         We comment that today Bret deposited a taxx refund 5,500.56 into his mortgage account which he showed on his monthly HW.

·         Do you have no future major wants such as trip to Lapland, extending the house, digging a pool, buying a car, …?

Welcome to call on 07 3848 1088 or email or visit our websites.

 

John McAuliffe