Wealthspire’s Zach Mangels helps Gen Xers plan so that they can simultaneously help support adult children, care for ageing parents, and cope with potential job loss.
5 min
Gen X families, including affluent ones, face a hornet’s nest of financial challenges, from helping out their adult children to providing care for ageing parents to managing careers in a perilous job market.
Zach Mangels, a senior vice president at Wealthspire Advisors in San Rafael, Calif., estimates a quarter of his clients are in the Gen X demographic.
“Mortgage rates are higher, carrying costs are higher, educational costs are higher, groceries are higher, eldercare is higher—all of that stuff eats into cash flow. And even people with higher incomes are feeling that,” says Mangels, 40.
Barron’s Advisor spoke with Mangels about the financial challenges facing his Gen X clients, people between the ages of 46 and 61.
Mangels touched on how he creates short-term plans for clients concerned about career setbacks, why he recommends boundaries for Gen X parents who want to financially support adult kids, and how he guides clients with ageing parents.
Typically, when you create a financial plan, you’re looking at long-range goals.
But now I look at more immediate needs because of the pressures Gen X families are dealing with.
For example, I see more clients whose children are coming back home after graduating from college, needing financial support for a much longer period of time than previous generations expected to receive.
If they need to support their child, I want to understand the nature of what the support will look like.
I have a client whose kids just graduated and whose majors don’t lend themselves to a high income right now.
They knew their kids would be coming back home after graduation and we talked about what the nature of their help would look like.
First we looked at their financial plan to see what kind of support they could provide and we defined the maximum amount.
Then we designed the support in a way that would be planned, explicit, and with purposeful boundaries.
That’s very important for the younger generation. Parents need to know how to help their kids without them becoming dependent.
The children need to have agency and to know they don’t have access to an unlimited piggy bank.
The clients had a conversation with their kids about what to expect.
The kids could live rent-free for three years, with a small stipend, an amount that didn’t disincentivise them from looking for a job.
In this environment, entry-level jobs are increasingly hard to come by, but any job that moves you closer to a career you want is worth looking at. In this case, their daughter got a job as an assistant to a personal shopper, which was related to the direction she wanted to follow.
I didn’t provide a ton of details to the parents with what exactly to say. But I coached them on the basics—having a clear, purposeful, intentional conversation and getting buy-in from their kids.
The cost of long-term care for seniors has increased dramatically.
One of the conversations I have with my clients is how they perceive their parents’ financial circumstances and to what degree they might have to provide a layer of financial support. My dad was in memory care for a few years and we paid maybe 15 grand a month.
My clients’ parents are usually relatively stable financially. But the most important issue is the use of the family residence to help provide support. A lot of people in California who have owned homes a long time have a lot of equity in those homes. That’s the ultimate backstop, the last line of defence.
Gen X is also dealing with career and income volatility. We’ve seen all the headlines about tech layoffs and the rise of AI. A lot of my clients work in the tech industry.
The conversations I have more frequently focus on clients’ concerns about their ability to continue earning at the same level.
We look at diversifying their equity component more quickly, getting it out of company stock, especially for those in tech.
For example, some clients at Amazon have restricted stock units they can sell periodically. But now they’re selling those (Amazon) stocks and then deploying the [cash into other equities] more slowly.
We’re hearing about how quickly AI is going to change things. For people in software on the front lines, they’re pretty anxious about it.
One client who works at Google told me he expected a lot of change with AI as the disruptive force.
A few companies will benefit, he feels. A lot won’t. So he’s actively selling his company shares.
Historically we would reinvest the proceeds as they’ve come in. But now he wants to slow that down. Hold cash a little bit longer and slowly deploy it.
His perception is that change is coming quickly. He doesn’t know what that will look like but it probably won’t be good.
In behavioural finance, we know you feel a loss much more significantly than you feel a gain. And he’s trying to avoid putting money in the market right before there is a big correction.
It’s super stressful. And as we go into 2026, especially in the tech sector and among those with high incomes, I see a lot of anxiety.
I have another client who works in finance, but the nature of his job moves with economic cycles.
He was laid off at the start of Covid and he’s getting nervous again. It’s a “vibecession” that a lot of people are feeling right now.
Over a year ago, we restructured where his investments are held, so that if he gets laid off and ends up spending his emergency fund, the next thing he’ll tap is a more conservative account we created.
It’s not that we took his overall asset allocation and made it more conservative. We just put more investments in this other account. It’s a matter of asset location and it gives him peace of mind knowing he has a fallback he can tap.
That strategy would be helpful for anybody today. The challenge is if you have accounts with a lot of capital gains.
My work with baby boomer clients often involves conversations about supporting their Gen X and older millennial children.
I’ve seen a lot of parents and grandparents of Gen Xers looking for ways to accelerate their generational wealth transfer, trying to provide assistance now when it’s more impactful on their kids’ lives.
For example, a baby boomer client was looking for ways to help her Gen X son, who is married with a child in middle school, but had started accumulating a lot of debt after he was laid off.
We worked together to model the level of support she could provide and how to structure the assistance so it wouldn’t impact her son’s sense of independence.
Ultimately, she decided on a one-time gift that would cover about six months of living expenses. I call this indirect Gen X planning.
Copyright 2020, Dow Jones & Company, Inc. All Rights Reserved Worldwide. LEARN MORE
The Australian leather house has opened an immersive four-day pop-up in Manhattan, unveiling its Bloom Collection and redefining what a product launch can look like.
Following the successful launch of its Palais Collection, MAISON de SABRÉ has unveiled a new modular handbag system offering more than 720 styling combinations.
Investors are bracing for a bumpier fall stock market due to shifting odds of a Federal Reserve interest-rate increase and other macro challenges.
3 min
The stock market had a decent summer. Investors are bracing for a bumpier fall.
In the past couple of months, equity investors cheered soaring profits at big companies, shrugged off jitters in the bond market and nudged megacap tech shares back near records.
Now, as the post-Labor Day stretch begins, a number of new challenges lie ahead: ever-shifting odds of an interest-rate increase from the Federal Reserve. Sky-high expectations after a stunning earnings season. The persistent threat of higher consumer prices as fighting in the Middle East drags on.
“You’re moving from this earnings-driven market to this macro-driven market with the Fed, inflation and interest rates in focus,” said Keith Lerner, chief investment adviser for Truist Advisory Services. “It tends to be a choppier period.”
Historically, every major U.S. stock index experiences its worst average return in September. The Dow Jones Industrial Average has slid an average 1.1% in the ninth month of the year, in data that dates back to the 19th century. The S&P 500 has seen the same average decline—and for every September dating back to 1928, the benchmark ends the month lower more than half of the time.
Analysts caution against reading too much into those seasonal patterns. But in recent weeks, new reasons for investor caution have emerged. One of the largest: the looming threat of an interest-rate increase from the Fed, which announces its next policy decision on Sept. 16.
Chairman Kevin Warsh’s decision to ditch forward guidance and take more of his cues from markets has muddied the waters for investors when it comes to monetary policy. That has left traders scouring Fed governor speeches and economic-data reports for clues on the central bank’s next move.
“There’s going to be a lot of eyes on those numbers,” said John Luke Tyner, head of fixed income and portfolio manager at Aptus Capital Advisors.
The past couple of weeks offered just one example of how frequently those expectations can change. After Warsh struck a hawkish tone during remarks on Aug. 28, the odds of a hike at the Fed’s next meeting jumped from 35% before the speech to 58%, according to CME FedWatch data.
On Thursday, Fed governor Christopher Waller made a case for leaving rates where they are. Interest-rate futures showed coin-flip odds between a hike and a hold. Then Friday’s robust jobs report amped up rate-hike bets once more, back to a roughly 60% chance of higher rates after the meeting.
“Rates have really been driving the car for equities the last few weeks,” said Ross Mayfield, an investment strategist at Baird.
That uncertainty comes as an unruly bond market could put pressure on stocks. Treasury yields have marched higher for much of the summer, driven by concerns about rising oil prices, growing U.S. budget deficits and a deluge of tech-company bonds now competing for investors’ cash. Last week, the rout went global, pushing yields to multiyear highs in Japan, Germany and the U.K.
Higher bond yields can drag on stock prices and lift borrowing costs for companies and consumers across the economy.
Rising prices remain the top concern for bond traders, and continued fighting between the U.S. and Iran has done little to ease those worries. The national average price of diesel climbed to a record of $5.850 on Friday, according to AAA. That is up from $3.712 a year ago.
Investors will get more insight on the path of prices this week, with the much-awaited consumer-price index report due Friday and a reading on producer prices Thursday.
With another blockbuster earnings season in the books, some analysts have also warned that any boost from the third-quarter reports due in the coming months could be minimal. Back-to-back quarters of standout profits have raised expectations and made it especially difficult to impress traders. Custom-chip company Broadcom, for example, said Wednesday that it more than tripled its earnings and nearly doubled its revenue. Shares slipped 2.7% the next session.
Many analysts note there are plenty of reasons not to panic. The economy is in impressive shape, thanks to a healthy labor market and the rippling effects of the artificial-intelligence investment boom. Profits are booming at America’s biggest companies. The Cboe Volatility Index has dropped to its lowest levels of 2026. Credit spreads are tight, a sign bond investors aren’t concerned about economic conditions that could hurt companies.
But the mood has shifted from the euphoria that felt tangible when the Nasdaq was notching back-to-back records early this summer. The question, Mayfield said, is whether the fundamentals that have bolstered the bull market so far can stretch the rally into 2027.
“There are more anxieties or uncertainties about the backdrop,” he said. “It does feel like a transitional moment.”
