A big payday is on the horizon for Gen X
If you’re a Gen Xer, your retirement prospects may get a boost from a major transfer of wealth that's on the horizon.
Members of the so-called forgotten generation — now aged 45 to 60 — stand to receive $1.4 trillion annually over the next decade, according to a new report from Cerulli Associates, as their baby boomer parents get older and die.
The report notes that while millennials will still inherit the most money over the next 25 years, totaling $45.6 trillion, Gen X members will receive more money than any other generation in the near term.
“The boomers really have created more wealth than any other generation in US history,” Bradley Schurman, author of The Super Age, who was born in 1974, told Yahoo Finance. “And younger Gen Xers and early millennials are going to be the ones that get the first wave of this from their parents.”
If you’re not quite ready for a financial adviser to join forces with you, consider a robo-advisor.
Learn more: How to start investing right now with a robo-advisor
Vanguard, for instance, offers several layers of advice for those who might want less handholding, but all include tax-efficient strategies and portfolio management for retirement planning and advice customized for you.
To have access to a robo-advisor, you’ll shell out an annual advisory fee of $15 for every $10,000 you have invested at Vanguard. For access to a hybrid personal adviser and robo-helper, it's $30 for every $10,000 invested as long as you have at least $50,000 in Vanguard accounts.
The artificial intelligence approach can be a smart first step. That said, “artificial intelligence is not designed to be a counselor and partner in retirement,” Schurman said.
“AI offers a great starting point, but it doesn’t have the emotional intelligence needed to assist individuals in the long run,” Schurman added.
Learn more: How to start investing — a 6-step guide
Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including the forthcoming "Retirement Bites: A Gen X Guide to Securing Your Financial Future," "In Control at 50+: How to Succeed in the New World of Work," and "Never Too Old to Get Rich." Follow her on Bluesky.
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