4 Mistakes Gen Xers Are Making With Their Money in the Trump Economy

The Trump era has reshaped the economic landscape in profound ways—tax reforms, trade policies, and shifting fiscal priorities have left lasting imprints on households and markets. For Gen Xers, sandwiched between paying for their children’s education and preparing for retirement, the challenges are acute. Yet many are repeating financial missteps that could derail their long-term stability. Here are four critical errors to avoid.

1. Underestimating the Cost of Longevity

Gen Xers face a retirement horizon stretching into the 2040s and beyond—a period when healthcare costs, inflation, and uncertain Social Security benefits loom large. . Despite this gap, many are underfunding their retirement accounts. Compounding the issue is the assumption that real estate wealth alone will suffice. A

highlights the need for proactive savings strategies.

2. Overreliance on Real Estate as a Wealth Anchor

The housing market’s post-2016 boom—amplified by low interest rates and tax incentives—has led many Gen Xers to overvalue their homes as a primary wealth source. While home equity can provide liquidity, it’s a single-asset bet. . Rising interest rates and regional market corrections could destabilize this strategy. Diversification into liquid assets or rental properties demands scrutiny.

3. Neglecting Portfolio Diversification

The stock market’s historic run under Trump—driven by tech and financial sectors—has bred complacency. Gen Xers’ portfolios often mirror the S&P 500’s concentration in a few high-flying stocks. . This narrow focus leaves them vulnerable to sector-specific downturns. Diversification into international equities, bonds, or alternative assets like real estate investment trusts (REITs) is critical to weather volatility.

4. Mismanaging Debt Amid Fiscal Uncertainty

Student loans, mortgages, and credit card debt have become a generational burden. While tax cuts reduced marginal rates, they also prioritized capital gains over wage growth, widening income gaps. . High-interest debt, in particular, erodes savings potential. Procrastinating on debt reduction—whether through refinancing or austerity—leaves portfolios exposed to inflation and interest rate hikes.

Conclusion: A Path to Financial Resilience

Gen Xers must confront these missteps with urgency. First, boost retirement contributions to match life expectancy and inflation—targeting a savings rate of at least 15% of income. Second, diversify real estate holdings beyond primary residences, leveraging tools like REITs or vacation rentals. Third, rebalance portfolios to include defensive assets like Treasury inflation-protected securities (TIPS) or international stocks. Finally, attack high-interest debt aggressively, using windfalls or tax refunds to reduce liabilities.

The Trump economy’s legacy is a mixed bag: it delivered growth but exacerbated inequality and fiscal insecurity. By addressing these four mistakes, Gen Xers can secure their financial futures—not just for themselves, but for the generations they support. The stakes are high, but the tools to navigate them are within reach.

Data underscores the urgency: with inflation averaging 3% annually, a $500,000 retirement nest egg would lose half its purchasing power by 2040. The time to act is now.