9 Investment Myths Gen X Still Believes (That Are Costing Them Money)

Gen X, born 1965–1980, has ridden some of the biggest technological and cultural changes of any recent generation. They've seen the rise of home computing and the internet and are now living through the age of AI. But they've also had to handle some of the toughest financial times.

From enduring the dotcom bubble burst and coping with recessions to working through the transition from pensions to 401(k) plans, this generation has dealt with a lot. Unfortunately, that's left some Gen Xers with misconceptions about investing that could be leading to financial stress.

Here are nine investment myths that Gen X still believes that could be costing them more than they might realize.

Gen X tended to start investing around age 32. Compare that to Gen Z, 45% of whom are investing by the age of 19, and this can seem like a very late start. Traditionally, a longer time in the market allows for more aggressive investments. However, it's never too late. Younger members of GenX still have plenty of time in the market, while those approaching 60 can balance aggressive investing with more conservative assets to reflect their retirement goals.

Although Gen X accounts for 19% of the population, it makes up 24% of the nation's homebuyers. That positive attitude toward real estate investment comes from low mortgage interest rates during the 2000s and 2010s. But today's interest rates are soaring, making it tougher to purchase property. Stocks, particularly in tech fields, could provide returns of 10.6% over the years versus low property appreciation of just 4–5%.

Around 45% of retirees risk running out of savings before the end of their lives. So, it's tempting to save every dollar for that hypothetical rainy day. Gen X knows what happens when funds run dry. The Great Recession of 2008 led to job losses, missed mortgage payments, and a lot of belt-tightening.

Saving is low-risk but low-yield. While you likely don't want to be as aggressive as you were earlier in your investing years, a well-balanced portfolio is still important as you near retirement to maximize growth potential. While there is always some risk, you have access to more financial advice now than ever before, so you can start investing with more confidence.

Gen X are more likely to hold a mortgage, and less likely than older generations to have paid it off.

There may be a strong urge to be "mortgage-free" before you invest money in other interests. However, if you have a low mortgage rate and expect to stay in your home, investing now could be the financially savvy decision. Experts also suggest paying off smaller debts like credit cards is more beneficial, and allows you to start investing while still paying for a mortgage.

A company match means your employer puts aside up to the same 3–4% salary contribution you make to your 401(k). Gen X may believe this is sufficient, mostly because they were the first entire generation to switch from defined benefits (pensions) to the 401(k) scheme. Starting a new system later in life means you have to catch up faster by making additional contributions where you can.

You can contribute up to $23,500 to your 401(k) in 2025. The more you contribute, the more you're saving for a comfortable retirement.

Waiting for markets to take a dive isn't necessarily ideal, even if you're getting stock at a better price. A smarter approach could be dollar cost averaging, a strategy that involves making regular, fixed investments on an automated schedule. Instead of trying to time the market for the best buy, you space out investments to average out the total cost.

This stops you from stressing about market ups and downs while ensuring you're consistently increasing the amount of your overall investment.

Many members of Gen X are on the cusp of retirement or a few years away. The fear that the Social Security funds will be gone by the time they retire is understandable. But experts say that Social Security will exist in some form for decades, although after 2035, there's the possibility that retirees may receive 83% of the expected benefit.

Gen X is in the unique position of being there for the rise of the internet and witnessing horrendous periods of recession. Stats show that between 2007 and 2010, Gen X lost nearly 40% of its overall net worth. So, it makes sense that there are some trust issues when it comes to financial advice. Use trusted resources and reviews to find reliable online brokers to help you invest wisely.

Growing up alongside the internet has given Gen X excellent cybersecurity habits but a general mistrust of automated systems. They prefer the autonomy to handle online challenges themselves. This attitude could prevent them from engaging with useful investment tools like robo-advisers. Learning more about how secure these tools are and how they work could encourage those in their 40s and 50s to engage more profitably with these digital advisers.

It's totally understandable why so many Gen Xers believe these myths. However, it's also possible to break free of these beliefs and get on the right track to building wealth.

Remember that everyone's financial situation is different. While someone may find success with real estate investment, you might find that a diverse portfolio of stocks and other investments might work better for you. Currently, one-third of Gen X say they're not sure they could handle unexpected expenses. Break free of these outdated theories, invest wisely, and you could ensure you don't become part of that statistic.