Schwab funded a research study to find out what the next generation – “Generation Now” – believes and how it views the world. They wanted to understand how they view their future, determine their fears, attitudes and behaviors.
“Generation Now” is 30 – 45 years old. They have graduated from college, have a career and are making good money. But as they reached adulthood, the events they grew up with shaped them and their attitudes.
Shaken Belief in Long-Term
Conventional investment wisdom has long held that a well – balanced approach, over a period of many years, will yield some degree of predictable gains. For “Generation Now” Investors, the power of the long-term has been called into question and placed increased emphasis on short – term financial / investment considerations and gains. Their parents believed that their children would be better off. “Generation Now” has begun to question if the future will be better than today.
I tend to believe the government good will that says you guys need to put money in to the financial market, the mutual fund that 529 provides to you and for 10 or 20 years make sure you have enough money to pay for your child’s education, but what is the outcome? I not only lose money, but even with the remaining money, I have to tell the government this is the money I’m going to use just for education only.
Yeah, there is anxiety about real estate values, whether the home will appreciate so on and so forth. Whether we’ll have enough to provide for the children’s education. Things like that. But overall currently, I think we’re in a great spot. We have high paying jobs. We’re able to handle most of our financial needs. Long term, these are our basic concerns about kid’s education.”
This is the fourth of 12 posts examining Generation Now.
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