New Study Suggests Gen Y Could Face Troubles in Building Wealth, Financial Professional Michael Kabarec Comments
As research reveals younger Americans are not living up to the wealth-building standards of their parents, analysts predict a bleak future for Gen Y citizens. Michael Kabarec provides more insight on the matter and discusses solutions.
PHILADELPHIA, PA, May 09, 2013
As a financial advisor who helps clients manage wealth, Michael Kabarec knows that it takes a lot of work for citizens to build up assets. While many older generations have had the ability to save up for retirement--such as by following solid savings plans and investment strategies--Kabarec notes that these practices are not heavily witnessed among younger generations. Now, according to a recent article from The Detroit News, these generational wealth gap trends are now becoming more apparent through a new report entitled Lost Generations? Wealth Building Among Young Americans.The Detroit News reveals, "Americans in their mid-30s and younger have accumulated less wealth than their parents did at that age more than 25 years ago, according to the study by the Urban Institute, which investigates and analyzes the country's social and economic problems." Michael Kabarec responds, "The bleakness of these trends may prompt younger generations to take more responsibility for their actions, but it is important to place blame for the lack of wealth on young Americans entirely. There have been a lot of factors associated with the recession that have given many young consumers a late start in the savings and wealth building game."
For instance, the article suggests, "Stagnant wages, diminishing job opportunities and lost home values are behind the issue and have kept young Americans from saving even as the economy doubled from the early 1980s, the study found." Still, while these factors may have kept many Americans back from their dreams of building wealth, Michael Kabarec notes that it does not suggest these individuals will always be low-income.
In the article, Caroline Ratcliffe--one of the study authors--indicates that if this group of Americans is not able to catch up, they will face unfunded retirements and have to rely on social programs. Although the article pinpoints many of the reasons younger Americans have fallen into financial jeopardy--such as by taking out student loans and suffering under the recent housing market crash--Michael Kabarec believes it is essential to not dwell on these problems, but instead seek growth.
"Financial literacy is becoming an increasingly important issue that future generations will no doubt have a greater understanding of than today's adults. However, it is important to remember that while Gen Y and Gen X citizens are not at satisfactory levels of wealth, it does not mean their time is up. With financial advisement and a solid goal plan, these individuals can not only find ways to build wealth, but also exceed their expectations if they follow the right strategies," Michael Kabarec concludes.
ABOUT:
Michael Kabarec is a trusted investment management professional who carries more than 30 years of experience in this challenging career field. Throughout his professional history, Michael Kabarec has gained strong insight into what skills and knowledge is necessary to perform tax management, investment management, wealth building services, small business development and retirement plans. Today, Michael Kabarec relies on his proficiencies in these areas to serve as President at Kabarec Financial Advisors, Ltd.--a Chicago-based investment management, financial and wealth advisory firm that has existed since 1982.