In fact, when asked to list their top five financial concerns, GenXers share four out of five responses with Baby Boomers, including planning for retirement, wealth accumulation, wealth preservation, and debt management. These similarities result in a wealth of opportunity for the financial advisor.
   
"Though their appearance might suggest otherwise, in financial terms, GenXers and Baby Boomers are almost identical," noted Beverly Moore, head of Retail Marketing and managing director at New York Life Investment Management LLC. "Even their investing styles are quite similar."

 

Thirty-one percent of GenXers and 36% of Baby Boomers have purchased mutual funds through a mutual fund company. Forty-six percent of GenXers and 42% of Baby Boomers manage their retirement accounts online. In addition, 24% of GenXers and 25% of Baby Boomers have online brokerage accounts.

 

"There are a number of misconceptions in the marketplace about the GenX investor. They have been labeled 'day traders' and are often overlooked by financial advisors," said Moore. "Yet, over two million GenX households are classified 'high net worth' by Forrester Research."

 

Contrary to popular belief, GenXers have not accumulated the majority of their wealth through dot-com stock options and inheritances. They did it the old fashioned way. Just like their Baby Boomer parents, GenXers earned their wealth. They credit salary packages and personal investments as their main sources of income. Only 31% of high net worth GenXers, compared with 30% of Baby Boomers, site stock options as a contributing factor of their current wealth.
   
"With over $708 billion at their disposal and an investment horizon 10-15 years longer than their parents, GenX is definitely worth the investment of financial advisors," added Moore.

 

In fact, nearly 40% of the high net worth GenXers surveyed already work with an advisor and fully two-thirds of the remainder will consider using one in the future. Of those currently working with an advisor, many use the same financial advisor that their parents or other relatives use.
   
While GenXers historically have more information readily available to them through Web sites, television programs, and radio shows, they look to advisors to validate their investment decisions. One survey respondent noted, "An advisor should be there to help me manage my finances, offer sound financial advice and planning for my investments, be straight to the point, and have periodic face-to-face meetings and reviews when my financial situation changes."
   
"Not many investment professionals have focused on Generation X but our research clearly shows that it's a huge untapped market," noted Moore. After participating in a MainStay roundtable on GenX opportunities, financial advisors found the market very attractive. "They're responsible, diversified, very conscientious about saving, young, with everything ahead of them. That's an ideal client," said one financial advisor. Another replied, "if you build a relationship, they're going to stay with you for the next 30 years."
   
"When you're looking to expand your book of business, call up one of your client's GenX children and you'll be amazed at the similarities regarding their financial concerns," added Moore. "Financially speaking, the differences between Baby Boomers and GenXers are really not that great after all."