Generation X – born between 1965 and 1981 – has reached a critical financial crossroads. Many in this group are in their peak earning years – as well as peak expense and peak chaos: juggling mortgage payments, college bills, and retirement planning all at once.  As if this wasn’t enough, there are a surprising number of money myths still floating around making some Gen-Xers think twice about taking action on their finances.

It’s time to clear the air. 

Here are five common financial myths Gen-Xers need to think twice about – and the truth that could help them build a more independent future:

1. “Never Invest When the Market is at an All-Time High”

You’ve probably heard it before: “The stock market is at record highs. I should wait for a dip before investing.” But here’s the reality—markets are supposed to reach all-time highs over time. That’s how long-term investing works.

Consider this:

• In 2024, the market hit 57 all-time highs. Would you have avoided investing all year?
• Even if you had invested in the S&P 500 at the absolute peak before a severe downturn (like 1999 or 2007), you would have made meaningful progress if you had held for a 15 year period

Markets fluctuate, but staying invested over time has historically been one of the best ways to build wealth. Instead of trying to time the market, focus on your long-term investment strategy.

What Gen X Should Do:

• Review your risk tolerance – as retirement gets closer, it may be time to balance stocks with income-generating investments
• Build an “appropriate-for-you” diversified investment strategy & stick to it
• Stay consistent with contributions – market highs and lows will happen, but long-term investing wins

2. “I Need 10 Times My Salary to Retire”

This is one of those blanket financial rules that might sound reassuring, but it’s also misleading. Yes, some people may need 10 times their salary saved, but for others, that number could be completely inaccurate.

Why? Because retirement isn’t one-size-fits-all. Your needs depend on things both in and out of your control:

• Lifestyle choices – Do you plan to travel frequently?  Where will you live? 
• Healthcare costs – Will someone have a medical event?  Will you need long-term care?
• Family responsibilities – Are you supporting kids, aging parents, or both?

Some retirees spend less than expected, while others burn through savings faster. A set multiplier like “10x your salary” ignores the nuances of spending habits, healthcare costs, and investment returns.

What Gen X Should Do:

• Run a personalized financial plan instead of relying on generic formulas
• Estimate future expenses and inflation—not just your income
• Consider how Social Security, pensions, and investment returns factor into your actual retirement needs

3. “Medicare Will Cover All My Healthcare Costs”

Many Gen Xers assume that once they turn 65, Medicare will handle everything. Unfortunately, that’s far from the truth.

A recent study found that a 65-year-old couple retiring today will need about $330,000 for out-of-pocket healthcare costs, and that doesn’t include long-term care.

Here’s what Medicare doesn’t fully cover:

• Dental, vision, and hearing aids – Often out-of-pocket expenses
• Long-term care – Nursing homes and assisted living facilities require separate planning
• Medicare premiums, deductibles, and co-pays can add up

If you plan to retire before age 65, you’ll need to budget for private health insurance, which can vary in cost – often determined by your income level.

What Gen X Should Do:

• Consider Health Savings Accounts (HSAs) while still working – tax-free money for future medical expenses.
• Factor Medicare premiums and supplemental insurance into your retirement budget.
• Explore long-term care insurance or alternative funding strategies for potential future medical & healthcare needs.

4. “I Have a Will, So I Don’t Need an Estate Plan”

Estate planning isn’t just about what happens after you pass away—it’s also about protecting yourself while you’re still alive.

Many people think that having a basic will is enough. But here’s what a will won’t do:

• It doesn’t help if you become incapacitated – who will make financial or medical decisions for you?
• It won’t prevent your estate from going through probate, which can be costly and time-consuming
• It may not protect your assets from unnecessary taxes or disputes

A proper estate plan includes:

• A living will and healthcare proxy (in case of medical emergencies)
• A power of attorney for financial decisions if you’re unable to make them
• Trusts for efficient asset distribution and tax advantages

What Gen X Should Do:

• Update estate documents to ensure your wishes are clear
• Appoint trusted individuals to handle medical and financial decisions if needed
• Consider trusts for more control over how your assets are distributed

5. “I Make Too Much Money to Invest in a Roth IRA”

Yes, Roth IRAs have income limits, but that doesn’t mean Gen Xers can’t invest in Roth accounts. In fact, 2025 has more Roth options than ever thanks to new legislation.

If you earn above the Roth IRA income limits (Phases out above $150,000 for singles and $236,000 for couples in 2025), here’s how you can still invest in Roths:

• Roth 401(k) & 403(b) Contributions: Unlike Roth IRAs, Roth 401(k)s have no income limit. Speak with an advisor on what amount best fits your goals.
• Backdoor Roth IRA: A strategy that allows high earners to contribute to a traditional IRA and then convert it to a Roth
• New Roth Options in SEP and SIMPLE IRAs: Business owners and self-employed individuals can now make Roth contributions to these accounts

Why is this important? Roth accounts grow tax-free and can be withdrawn tax-free in retirement – an incredibly powerful tool in an uncertain tax environment.

What Gen X Should Do:

• Check your 401(k) options – if you have a Roth feature, you may want to take advantage of this
• You may want to consider a Roth conversion strategy if you have a majority of  pre-tax retirement accounts
• Diversify your tax strategy to avoid heavy tax burdens and Required Minimum Distributions (RMDs) in retirement

Final Thoughts: The Best Money Decisions Are Personal

Financial planning isn’t about one-size-fits-all rules—it’s about understanding how your unique situation affects your future.

• Investing at all-time highs? Long-term discipline beats market timing.
• Retirement savings goal? Ignore generic formulas—focus on actual needs.
• Medicare? It’s going to be a foundational piece of your healthcare in your retirement, but won’t cover everything.
• Estate planning? Wills may not be enough—plan for the unexpected.
• “Roth” options for Retirement? More accessible than you think—consider them for the long-term.

For Gen Xers in their 40s, 50s, and early 60s, the clock is ticking. The best time to start planning is now. Whether you’re catching up on retirement savings, reevaluating investments, or ensuring your family’s financial security, taking action today will lead to a more confident, stress-free future.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risk including the possible loss of principal “There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.​​A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply. Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.