Alexandra DeFelice writes: Gen X and Y may reap some big benefits from the bear market, and advisors who target those generations could profit from helping them.
The biggest problem may be that members of those generations who started investing less than a decade ago likely have never invested during a bull market, so they're skeptical about the ability to accumulate wealth this way, Charles J. Farrell, an investment adviser with Northstar Investment Advisors in Denver, explains in an article in InvestmentNews.
"It is our job as advisers to help younger investors fight that skepticism and focus on the fundamentals of consistent savings and balanced investing," he writes. "Two of the most important factors in building wealth are time and acquisition cost. The longer the time frame and the lower the acquisition costs, the higher the odds are that one's wealth will grow."
Because Gen X and Y aren't in a rush to retire, slow but steady investments may prove rewarding down the road.
"If they consistently invest small amounts on a monthly basis into a balanced and globally diversified portfolio, they are most likely laying the foundation for a significant increase in their wealth as they age," Farrell says.
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